It’s A 2-Faced Market

It looks like the housing market “cooled” along with our weather. Welcomed news is that the number of Active homes on the market continued to drop from its high in July of (433), to end September at (397). Of the total, the New Homes ended the month at (270); a drop of (18). That’s good news. However, the Resales remained the same as August with (126). This oversupply of Resales is the primary reason why over 33% have Price Reductions. More will follow too, unless demand increases.

RESALES:

As insight, in July, the Average Sale Price peaked at a HISTORIC HIGH. The market has changed dramatically since though. And, not for the better. Average Sales Price is on a downward trend by declining over 10% just from August. The Average Price Per Square Foot dropped a whopping 28% and the Months of Supply dramatically increased by 45%. Looking ahead for good news? Well, the Fed lowered interest rates, and this should help. Let’s hope, because winter is approaching…

NEW HOMES:

Where the Resales had a very bad month, not so for the New Homes. Every indicator was positive. Sold prices remained high, the Price Per Square Foot rose and the number of homes Sold increased; resulting in less time to sell. These results also show the duality of the market between the New and the Resales. My mantra continues. Most Buyers want new. And unfortunately, we’re in a market that is dominated by the New. So, if you’re contemplating selling, New Homes should be an important factor when determining a List Price, because this is where most of the competition is…not other Resale homes.