To start off our latest market update, we’ll be answering everyone’s biggest question: Are we in a seller’s market or a buyer’s market?
Well, I think we’re not in either—we’re in a balanced market. Here’s why:
1. Sales are virtually identical. We’ve had the same amount of sales from the fourth quarter of 2018 to the first quarter of 2019. If it wasn’t for January, which is typically a slow month, we wouldn’t see any difference in the number of sales.
2. The list-to-sale price ratio is around 94% to 95%. If you put your home on the market, odds are that it will sell for about 5% less than your asking price. This is a good indicator of equal amounts of supply and demand.
3. Our number of days on market is around 160 days. That’s an increase from last quarter to now, but it can be explained by our amount of inventory.
4. Inventory is climbing. I’ve looked at the different price points, and there is about five to seven months’ worth of inventory overall. Whenever you see anything about a balanced market, you’ll see there are about six months of supply.
Last week, the Fed told us not to worry about any upcoming interest rate hikes; however, they didn’t mention a further decrease, either. Because our rates won’t increase, our market should stay pretty strong.
Buyers, you have a lot of properties to choose from right now, but don’t hesitate—the good ones sell quickly. Sellers, get prepared for some competition. If you don’t want to be on the market for 160 days, you’ll need to make sure your home is in tip-top shape and priced correctly.
If you have any questions or would like more information, feel free to reach out to me. I look forward to hearing from you soon.