Today I’ll be going over the latest market statistics and what they mean for you.
Perhaps the most interesting stat is that pending home sales have been down for both June and July of this year. For about 12 months, these numbers have been shooting up, so even the small decrease we’ve seen is a big indicator.
The number of homes entering the market has remained relatively low, so what’s causing the lower pending sales numbers? In general, we’re seeing less buyer demand, fewer multiple-offer situations, and fewer homes selling above list price.
What does this mean for you? At the end of the day, it’s still a seller’s market and multiple-offer situations are still more common than in a typical market. We’re just seeing things cool off a little bit.
One of the biggest drivers of this market is low interest rates. To explain how they are affecting the market, I’ll use condos as an example. In 2018, there were condo units in our area selling for $520,000. Now, one sold for $575,000. That’s a $55,000 increase in price. However, because of our low interest rates, the monthly payment on the condo from 2021 will be less than the condo from 2018. This is the main reason why demand remains high despite rising prices.
If you have any questions about today’s market update or any other topic, give me a call at (805)-781-3750. I look forward to hearing from you.