This real estate market is changing - read on for info & quick video update too!

Geoff Hyland our team owner does monthly market updates. Below is the information shared at the beginning of June and discussing current market trends over the 30 days prior or the month of May. Stay tuned for Geoff's June market data update with lots more relevant info in real time. Our team has been watching local real estate trends and recording market data for the last 16 years and we are always available to answer any questions you may have about market timing, interest rates, inventory, etc. Just reach out!

May Market Update

What's going on in the market as of beginning of June is some of the same trends that we've been talking about the last few months updates. For June 1st, our inventory hit 488 homes, so just keep in mind that is about an 80% increase from where we were in June of 2021 when we had 273 homes on the market.

Now, what are some trends that we're seeing as of May's data?

In May there were 300 homes that went under contract. We started on May 1st with 374 homes. 300 went under contract compared to 298 in April. So the good news is, as of June 1, we're still seeing plenty of buyer demand.

Chief economists throughout the country are basically saying that as long as that demand maintains our inventory levels, they need to come up but we are a ways off of an oversupply situation.

Currently, the trend is that demand is still remaining strong.

There was a lot of speculation about what was going on with interest rates. As of June 1st they seemed to have kind of stabilized in the mid-fives. Now, when you look back over the 50 year history, 5-5.5% interest is not a bad rate. Now it's not free or nearly free like it was 18 months ago, 2.5-3%.

So I think in April we had a little bit of hesitation with consumers kind of settling into the new norm. Here on the team we were able to put 46 properties under contract in May alone. That was a record setting month for us.

Now, what else are we seeing and anticipating?

Right now as of the beginning of June with the current inventory, if demand stayed constant, we're at about a seven week supply, just short of two months. What's a normal market? Well, normal markets are typically defined as between a five and seven month supply. So we're still pretty heavily swayed in the seller's market right now.

However, we are starting to see some reductions in prices, which is opening up those opportunities for buyers. So, case in point, our days on market has stretched out a little bit more. MLS-wide, we're looking at just over three weeks for average days on market and so that's creating some price adjustments. In fact, about 20 to 25% of the overall inventory on the market right now has made a price adjustment of some kind just in the last seven days.

Does that mean the market has necessarily come down?

When you look at the chart above that shows our average price point per square foot. We haven't seen a trend reversal yet but it did last month start to flatten and I would speculate that trend might continue for a little bit. But what we're seeing again is maybe a combination of some people that were a little bit optimistic on pricing who didn't sell after those first week or two weeks, and they're starting to make some price adjustments. And we are starting to see buyers continue to get homes accepted without necessarily going over list price, and in some cases, even 3 to 5% under the asking price.

I'll be back with another update for June. If you have any questions at all, please give me a call at 928-237-4425.

Have a great day.

Geoff

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