How is the Real Estate Market doing in 2017?
Do you remember the analysis I put together in January of this year, looking at 2016 and comparing it to previous years? We’re now halfway through 2017; how is the market doing?
You may have heard that we have a seller’s market, which means that we have less than 3 months of inventory available to buy (in other words, we have less houses for sale than would normally sell in 3-6 months). This is true, but only in certain parts of the market. Depending on the price range, we could be in a seller’s market (0-3 months of inventory), a balanced market (3-6 months of inventory), or a buyer’s market (6+ months of inventory). Let’s dig a little deeper.
|Number of Sales|
|Sale Price||2016||2017 (through 6/30)||Active||Months of Inventory|
Overall, the news is correct: we have a seller’s market with 2.71 months of inventory for sale overall. However, this changes in each price range. As you can see, we have a strong seller’s market right now for anything priced at $250,000 or less. For houses priced between $250,000 and $350,000, we have a balanced market. And for homes priced at $350,000 or higher, we actually have a buyer’s market (with one exception: houses priced between $900,000 and $1,000,000).
What does this mean to you? If you’re not looking to buy or sell this year, this is simply “nice to know”. However, if you are looking to buy and/or sell, make sure you know where you land, and also how much competition you will have (other buyers or other homes on the market). This will help you to know how aggressive you should be in selling your current home or buying a new home. Finally, keep in mind that all real estate is local. Contact me and we can discuss your situation in more detail.