Important information you need to know about our local housing market.
What’s going on in our housing market? Things have been changing a lot recently, and many people have been asking us about the future of real estate. Will things stabilize or will there be a crash? To answer that, today we’re bringing you the latest market numbers and explaining what they mean for the future of our market.
First, the average sales price is $356,000, which is up from this time last year by 2.24%. Also, days on market is up 85%. The average home spends 37 days on the market instead of the five or six days it took during the market’s peak.
If the market is slowing down, why are prices still high? It all comes down to our lack of inventory. Right now, we only have two months of inventory in our market. That means that if no new houses went up for sale, we would run out of supply in just two months. For reference, a balanced market is supposed to have around six months of inventory.
That being said, inventory has been increasing a little bit recently, and that’s because home sales are down. It may feel like we’re heading for a crash, but in reality, our market is just returning to normal. It only feels like we’re crashing because things were so fast-paced before.
In 2021, there were over 6.12 million home sales. The average over the last decade or so has been between five and five-and-a-half million sales per year, so 2021 was very active. The year that had the smallest number of home sales was back in 2008 with a little over four million.
None of the numbers indicate that the market is going to crash. It looks like we’re going to have about the same year that we had last year. However, the factor that could change everything is interest rates. If they fall, our market will likely go back to being fast. If they increase, things could slow down further.
No matter what happens to our market, we’ll be sure to keep you updated. Call or email us with any questions you might have. We look forward to hearing from you!