Sales Flatten while Sellers Capitalize on Price Gains

By David Arbit on Thursday, August 16th, 2018

New listings increased this July compared to last year, which could hint at a flurry of sellers looking to take advantage of this strong market. July marked the second increase in seller activity since November 2017. Meanwhile, buyer activity flattened out after seven months of year-over-year declines. This trend of rising seller activity and moderating buyer activity could mean more inventory coming down the pipeline. Increasing seller activity combined with a cool-down in demand is consistent with a loosening marketplace. That said, buyers shopping this summer and fall will still face stiff competition. Cooling buyer activity is likely a reflection of the shortage of homes for sale. Sellers yielded an average of 99.8 percent of their original list price and 100.6 percent of their current list price, illustrating how undersupplied markets tend to favor those with something to sell. The shortage is especially noticeable at the entry-level prices, where multiple offers and homes selling for over list price have become increasingly common. The move-up and upper-bracket segments are less competitive and better supplied. The market remains relatively tight, but there are some early signs that things could be loosening up to provide relief to buyers.

July 2018 by the Numbers (compared to a year ago)

  • Sellers listed 7,671 properties on the market, a 4.1 percent increase
  • Buyers closed on 6,242 homes, almost dead-even with last July
  • Inventory levels for July fell 13.5 percent compared to 2017 to 11,709 units
  • Months Supply of Inventory was down 11.1 percent to 2.4 months
  • The Median Sales Price rose 6.6 percent to $268,000, a record high for July
  • Cumulative Days on Market declined 17.4 percent to 38 days, on average (median of 18)
  • Changes in Sales activity varied by market segment
    • Single family sales fell 1.8 percent; condo sales rose 13.4 percent; townhome sales increased 5.2 percent
    • Traditional sales rose 1.2 percent; foreclosure sales sank 39.3 percent; short sales dropped 23.3 percent
    • Previously-owned sales were even with last year; new construction sales increased 14.0 percent

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