It’s one of my favorite times of year. The days are crisp, the leaves are brilliant in their color, it’s the middle of football season and basketball season is right around the corner. What could be better? Well, a housing market that remains strong might be a good add on and that’s exactly what we have on the Eastside. After a bit of relative slumber over the Summer, the market has picked up steam defying some historical Fall slowdowns. 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. Months supply of inventory stayed flat compared to the August number and for the second straight month, we saw a drop in YOY months supply of inventory. As the chart shows, the months supply of inventory in September, 2019 was 1.9 months, which was .7 less than the same month last year. While pending transactions are grew YOY, the number of active listings fell by about 20%!
In August the median price for residential properties stayed flat YOY despite the drop in inventory but in September, we saw a 4% increase across the Eastside.
I love this next graph which compares not only September, 2019 with the prior September but also with the previous month of August, 2019. For the first month in a while, the three months represented all look very similar. In September, 2019, 67% of sellers sold their homes BELOW list price or had to make a price drop before the sale was made which was the same % in August. Sellers are still not in line with where the market is. 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 although the 1.5M-2.5M segment is now in positive territory.
Finally, here is a summary section with some added details. Look at mortgage rates. If those were similar to the rates in September, 2019, we would have a very different looking market. Buying power is high right now.
So, what do these numbers tell us? There is a consensus building that our market will not experience the normal late year lag and continue strong through the Holidays into early next year. With the reduction of inventory, we could see a return to multiple offers but presently we are seeing a disconnect between seller pricing and what the market will bear. Keep in mind as well that these number reflect the Eastside generally and local submarkets can look very different.
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.