Market Pulse for 10.16.23-10.22.23

Buyer Demand:

Last week, 138 homes went pending, showing an increase from the previous week’s 129. Among these, 44 were new construction properties, while 94 were resales.

Supply of Homes:

The number of homes for sale remained steady, with a total of 1,331 homes available last week. Among these, 321 were completed new construction homes, 213 were under construction, and 797 were resales.

Historical Comparison

To provide a broader perspective on the available supply of homes, the second graph illustrates the total number of homes for sale since May 2006. Back in 2006, two years prior to the Great Recession, there were over 4,500 homes on the market. This number reached its peak in 2007, with nearly 5,200 homes available. Beginning in 2009, the inventory of homes exhibited a consistent downward trend, hitting a low in January 2021 when it dipped to fewer than 300 homes. Except for the extraordinarily low levels during the pandemic, the current inventory remains at historically low levels.

Inventory Rate:

The inventory rate is a vital metric in real estate because it reflects the balance between supply and demand in the market and influences pricing trends. The overall inventory rate stood at 2.2 months, with new construction at 2.8 months and resales at 2.0 months.

Historical Comparison

For a historical perspective on the inventory rate, the graph below unmistakably demonstrates the current market is healthy thus far. During the Great Recession, inventory rates were in the 8 to 16 month range.

Interest Rates:

For the seventh consecutive week, mortgage rates have steadily climbed, approaching eight percent. This marks the lengthiest continuous increase since the spring of 2022. In 2023 alone, rates have surged by a full two percentage points.

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