With the Colder Winter Air, are we Seeing a Colder Real Estate Market?
December 2018 Market Snapshot
Greetings EVERYONE! Well, we all made it through the hustle and bustle of the holiday season and now we find ourselves smack dab in the middle of a brand new year. With that comes a fresh start and ALL kinds of Opportunity. Opportunity to set and define new goals. Opportunity for new business and personal growth. Opportunity to achieve that level of physical fitness you’ve always wanted. AND just maybe for some of you, Opportunity to sell your home and make that move to the next season of your life. You may be wondering if this is the best time though? Is 2019 the year? All good questions indeed. I know, I know, this is a December 2018 Market Snapshot and yes, we’re at the end of January 2019. These reports always come out a month late though which is why we’re still discussing 2018.
Linda and I here at The MITCHELL Team sell around 50 houses a year on average which is more than enough to start to notice the subtly of change. And, supply and demand is a great gauge to notice a possible change.
Now they say (the real estate experts) a healthy market has an inventory of approximately 3 to 4 months worth of homes on the market. As you know, we’ve been tracking in the low 1 month’s worth of supply for the past several years now and its made the perfect recipe for a STRONG sellers market.
However, year over year for December, we’ve had a 30% increase in inventory. It is perfectly normal for things to slow down this time of year and inventory typically does increase but that wasn’t the case in 2017 really. It still stayed under two months. Matter of fact, December was the first time since 2015 where we’ve gotten to the 3 months of inventory range. With that has come substantially longer days on market (DOM). It’s up to 49 days from 36 days in December 2017. That’s a 36% increase. It’s simple economics really, if there’s more to choose from, people take longer looking and in general, they become considerably more picky. This is definitely what we’ve been experiencing.
If you’re looking to buy a house then this is good news for you. First, there is 1/3 more inventory for you to choose from. Second, homes are on the market longer and you’ll be facing less competition for the home you want (in most cases). If you’re looking to sell however, expect your home to be on the market longer. It most likely won’t be a super quick sale; especially in the higher price points (+300K).
So, whats the verdict? Technically, we’re still in a sellers market as we still are at a lower inventory (3.0 months) than that of a balanced market (4-6 months of inventory). However, we do definitely seem to be trending towards a balanced market and with it, a new set of different opportunities. So with all that being said, give us a call here at Green Fin Realty if you have any questions about the market in general.
Also, if you’re wondering about the actual value of your home and not just want the Zestimate says, reach out to us here: GreenFinRealty.com/HomeValue.
Download the one page December Market Snapshot… You know you want to. >>>
Have a GREAT 2019! We’ll see you next month for the NEXT Market Snapshot.