The majority of homeowners will still have a great equity position.
Today we’ll be sharing some urgent news every buyer and seller should know in this quickly changing market:
1. Sales. Sales are down 5.1% month over month and down 9.3% compared to last year.
2. Inventory levels. New listings added have a month-over-month increase of 13.4%, while the year-over-year comparison has increased by more than 21%. Total inventory has a month-over-month increase of 37.5%, while the year-over-year difference reflects a significant increase of 44.4%.
3. Active listings. The active listings are double what they were last year and up 100% year over year, and almost 40% of that is in the past 30 days. The increase in supply is due to the drop in demand. Listings under contract are down 15.6% year over year.
4. Pricing. Average new listing prices are up 24.3% year-over-year but are expected to change, and average sales price is up 16.7% year-over-year, while the year-over-year median sales price is also up 21.8%.
“The majority of homeowners will still have a great equity position.”
Now buyers have more active listings to choose from every week. If this pace continues, a market balance, where there is an equal balance between buyers and sellers and neither have a clear advantage, is possible as soon as mid-August. There will also be more price reductions and an increase on days on market.
We’ve shared with our clients that an adjustment is likely but we did not anticipate such a fast and dramatic change. The last time we saw a similar market cooldown was in 2005, but 2022 seems like a more striking reversal than we experienced back then. At 2:27 in the video, the chart illustrates this phenomenon.
Fortunately for sellers, even if we experience a normalization in values, the majority of homeowners will still have a great equity position due to the increase in home values over the past few years. If you plan on selling, the safest advice we can give you is to sell as soon as possible because we consider it an urgent real estate decision in this market.
If you have more questions about the market or real estate in general, don’t hesitate to reach out at (602) 352-3600 or click this link to submit a contact request. We look forward to hearing from you soon.