So what exactly does this mean? From last year to this year the median sales price has risen significantly, over 8%. However the number of sales is also down around 8%. In other words the market value has stayed about the same. Also, when comparing July’s inventory to July of last year, there is a very noticeable drop in inventory, at over 20%. Inventory has been historically low for all of 2018, but has been rising each month. Compared to February of this year, inventory is already up 60%.
If you are a buyer, be aware that when inventory is low, prices will remain high. Although prices are expected to slow down, they will likely remain high for some time. Now may be the best time to pull the trigger since interest rates will be raised soon.
If you are a seller, you want to pay close attention to rising inventory. Inventory has been rising steadily which means more competition for your home when you list it. This can lead to a decrease in the price you command. Also, rising rates will affect buyers’ purchasing power, so while it is still a sellers market, we may be heading toward a shift. Now is a perfect time to sell.
