What’s Up and What’s Down?

Rising inventory is a predessor to lower prices. In April, Active Inventory rose 20%. In May, it rose an additional 9%, to (409). Another all time high! Of these, 283 were New Homes and 126 Resales. More worrisome? The average home price dropped to $528,430, which is just $189 per square foot. As mentioned in the video, the Fed also does not appear it’s going to lower rates, or even keep them the same. In fact, there is talk of actually raising rates. So today, the yellow caution flag is out!

RESALES: ​

The adage, “what goes up, comes down” is apropos regarding the average Sales Price in May. It corrected from April’s dramatic increase and plummeted down to earth by dropping over $110,000. The Price Per Square Foot also dropped by 4%. The good news? The number of homes Sold increased. Overall though, not good signs for what is normally the start of the best-selling months of the year…

NEW HOMES:

Stability is welcomed news, so I’m pleased to see that May continued the upward trend with the average Sales Price remaining reasonably constant. Additionally, the Price Per Square Foot continued its upward rise, albeit slightly so. Regardless, any increase is good news! The number of Solds declined a little, yet well above the 4-month running average.  In short, a pretty good month for the New Homes.