April showers certainly brought with it some May flowers. As you go about tending to your garden, you might also be wondering how the Eastside real estate market performed in April. There are always interesting things to look at each month so let’s dig in.
Months Supply of Inventory. It’s a term that real estate professionals use to assess the overall health of the housing market health. The lower the number means that there are fewer active listings compared to sold properties. That’s good for sellers. The higher that number means there is a lot of inventory compared to sold properties. That’s good for buyers. As the chart shows, the months supply of inventory in April, 2019 was 50% greater than in April, 2018 and double that of April 1017. While that may seem like big jumps, keep in mind that we are dealing with very low months of supply numbers and April 2019 came in at 1.2. Historically still very low and indicative of a seller’s market. But, the two year trend is upward and we will want to keep an eye on that.
When we look at the median price of sold listings on the Eastside, we also see a trend that indicates more available inventory. This trend is a lowering of the median price compared to the same month in prior years. The chart below shows that April, 2019 was the first year since 2010 where the median price fell from prior year. Before you go running to the hills worrying about falling home prices, keep in mind that it was just a 2% drop which came the heels of significant year over year price increases. Again, however, a trend we will want to keep an eye on.
I love this next graph which compares not April, 2019 not only with the prior April but also with the previous month of March, 2019. These numbers start to tell a very interesting story for sellers. In April, 2019, 28% of sellers were able to sell their home at or above the list price compared to a whopping 62% of sellers in April of 2018. And this number was in line with the previous month which saw 24% of sellers having that same experience. At the opposite end of the spectrum, There were double the number of sellers (14% to 28%) who had to do a price drop before selling their home compared to the same month a year ago.
We know that there are submarkets in every area market based on price. This next chart shows a breakdown of closed sales in 7 different price segments on the Eastside compared to the same month in the prior year. It’s interesting to note that while the overall market is down for the year, the 500-749K segment is performing well while the 750-999K segment is struggling, relatively speaking.
Finally, here is a summary section broken out in single family residential vs. condominiums. Clearly, we need more condo inventory and you might want to read my blog post about new law changes that might help in that regard.
So, what do these numbers tell us? The market is still very much a seller’s market for both single family residential and condos, although there was clearly a move in the buyer direction. We are not seeing nearly the multiple offer scenarios and many more sellers are experiencing the challenges of a home not priced properly. More days on the market, more time waiting and more uncertainty.
If you would like the entire market statistic report packed with even more interesting charts and information, please email me at firstname.lastname@example.org and I will send it your way. In addition, please let me know if you would like a complimentary market analysis of your home or if you know someone who is looking to buy or sell.
*All statistical information created by Windermere Real Estate/East Inc. using NWMLS data, but information was not verified or published by NWMLS.