Buyer Demand:
There were 129 homes to go pending last week, reflecting a similar demand to the previous several weeks as well as this same time last year. For new construction, there were 42 homes to go pending. For resale, there were 87.
Supply of Homes:
The inventory of available homes experienced a slight uptick, reaching 1,336, a modest increase from 1,305. Within this inventory, there were 307 fully completed new construction properties (an increase from 249), 216 homes in the under-construction phase (a decrease from 258), and 813 resale homes (an increase from 798).
Inventory Rate:
The inventory rate metric is significant because it provides valuable insights into the balance between housing supply and demand in the real estate market. Most recently, the inventory rate continues to trend within the 2.0-2.5 month range, pointing to some softening of price pressures compared to earlier this year. The overall inventory rate is at 2.4 months, with new construction at 2.9 months and resale at 2.2 months.
Median Listing Price of Pending Homes:
Upon examining the median price alongside the inventory rate above, a distinct pattern comes into focus: evident upward price pressure during the period when the inventory rate remained within the 1.0-2.0 month range. Nevertheless, as the inventory rate began to increase in early July, coinciding with 30-year mortgage rates surpassing the 7% threshold, the price pressure subsided, as depicted below. While the absolute inventory figure holds significance, the directional trend of the inventory rate is also crucial. Put differently, while historically, a 2.5 month inventory rate might classify as a seller’s market with strong upward price pressure, in our current market, it’s the trajectory of the inventory rate that is equally important to watch.
Interest Rates:
This week, mortgage rates edged higher once again, intensifying their impact on affordability & buyer demand.
*Although the author attempts to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an “as is” basis, with no warranties of any kind whatsoever. Go to Disclaimers and Methodology.
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