Hope you all got out to enjoy some of the great weather in May, along with the flowers brought to us by our customary April showers. You might recall that we started to see the Eastside real estate market slow a bit in April and that trend continued in May. For weary buyers, this news below will be a welcome sign of a possibly longer term trend. As always, there are 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 May, 2019 was 65% greater than in May, 2018 and more than double that of May 2017. While pending transactions are still strong, the number of active listings on the market hit the highest number since 2012. It’s worth noting that these rates were greater than the increases we saw in April. 1.5 months of supply is still historically low and indicative of a seller’s market but the rest of the data will start to tell a different story.
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 – typical supply and demand economics. For the 2nd month in a row, the chart below shows that May, 2019 was the first May since 2010 where the median price fell from prior year. We experienced a median sales price drop of 2% in April and the May drop was double that to 4%.
I love this next graph which compares not only May, 2019 with the prior May but also with the previous month of April, 2019. These numbers start to tell a very interesting story for sellers. In May, 2019, 29% of sellers were able to sell their home at or above the list price compared to a whopping 58% of sellers in May of 2018. And this number was in line with the previous month which saw 28% 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 very well while the 750-999K segment is struggling, relatively speaking.
Finally, here is a summary section broken out in single family residential vs. condominiums.
So, what do these numbers tell us? The market is still a seller’s market for both single family residential and condos, although we are now in month two of a pretty significant shift 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.