Here is a synopsis:
Sales were really high. In fact it was a record July for sales in the REBGV area. It seems that the local 'belief' in owning real estate as a recipe for financial success and security is undying.
Active listings are dramatically lower than the same time last year.
Consequently, months of inventory is really low at 3 months. This means that there is really tight competition for properties.
Prices have been edging higher since March in a very strong seasonal run spurred on by lifetime low interest rates.
The correlation between months of inventory and prices changes is still relatively strong.
It will be interesting to see what happens in the local market over the next 6-8 months as the super-low rates are now unavailable and the normal seasonal weakness should kick in.
It would appear that the market is not as hot as the media would have us believe. Compared to the past year it is on fire, but this is about average with respect to the past 4. Slightly higher sales, but slightly higher listings makes this a pretty standard summer. Of course the past 4 years have seen huge price increases and probably wouldnt be considered normal in the grand scheme of things.
ReplyDeleteI think a lot of the media wouldn't dare report something bad about the market since real estate advertising is one of their last remaining cash cows.
The next few months will show declines, but it will be interesting to see if it is like this time last year or a more reasonably paced decline. Interest rates will obviously be a huge factor in what happens in the next year.