The other day, I was taking a glance at the recent MLS statistics and it jumped out at me the startling difference in stats compared to one year ago.
Let’s take a minute and talk about some key indicators in the real estate market and what the data from Metrolist tells us about the health of local real estate.
First, inventory has been stable and it’s been remarkably low. For at least the last 18 months, we’ve been hearing rumor after rumor from “industry insiders” that banks were getting ready to flood the market with a massive amount of foreclosures. I hear it and I hear it, but it doesn’t happen. We’re all grateful it hasn’t happened and as a result, if you take a look at inventory as of the date of this column, there are only 21,000 single family homes and condominiums on the active market. That’s low for this time of year and it’s only up 1% from this time last year. Conclusion: inventory is low, has remained low, and probably will stay low for a while which means less choices for the buyer and better prices for sellers.
Sold data is what we all want to know about and it gives us some of the best news of the all the numbers. Sold homes and condos are up 16% from last month and 23% from this time last year. Better yet, average days on market are down 7% from last month and 22% from last year. To top that, the average sold price rose 7% from this time last year.
There is good news with homes that are under contracts as well. Homes that are under contracts are up 12% from last month and 27% percent from last year. That 27% represents the most significant change in all of the market data.
Combine this information with the data that was released about positive job growth in March, April, and May and you start to have a good feeling about the recovery. There is pent up demand by home buyers and now we are starting to see those results. Remember, jobs and real estate are always the last indictors to come around for a recovering economy and with positive news in both sectors, maybe we are out of the woods.