It’s early September and that means a couple of things. The kids are (finally) back in school and it’s time to look at how the Eastside real estate market performed in August. There are a lot of things happening on both the local front (e.g. robust employment growth and commercial office space development) as well as the national scene (e.g. talk of recession, global trading debates and the 2020 Presidential election). Suffice it to say that the combination of these things makes for great cocktail party discussion and a real estate market that has some interesting dynamics playing out. So let’s dig in to the numbers.
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. We had been seeing a monthly YOY comparison uptick on this statistic but in August we reversed. As the chart shows, the months supply of inventory in August, 2019 was 1.9 months, which was .3 less than the same month last year. While pending transactions are grew YOY, the number of active listings fell by about 10%.
The median price for residential properties stayed flat, like really flat, coming in exactly as it was for August of 2018. One would think that with lower inventory, prices might rise but that did not happen.
I love this next graph which compares not only August, 2019 with the prior August but also with the previous month of July, 2019. These numbers tell us that Sellers are still living in times of past when pricing their properties. In August, 2019, 67% of sellers sold their homes BELOW list price or had to make a price drop before the sale was made. Compare this with the same month a year ago where 53% of sellers were in the same boat. Also, look at the average number of days it took to sell a home when it required a price drop compared with a home that sold at listing price. This indicates how important it is for sellers to properly price their home out of the gate.
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. At a high level, the overall market is equal to this same time last year in terms of closed sales. The 500-749K segment continues to buoy the rest of the market.
Finally, here is a summary section with some added details. Look at mortgage rates. If those were similar to the rates in August, 2018, we would have a very different looking market. Buying power is high right now.
So, what do these numbers tell us? It’s a mixed bag. We had several months were inventory was increasing relative to buyers but that stalled in July and has reversed itself in August. At the same time, the median price is stable, year over year. We are certainly not seeing nearly the number of 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. A knowledgeable real estate professional can help!
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.