The market from through April 30, 2021

Inventory on the Rise…. But so is Demand

Last month, I addressed the Elephant in the Room; low inventory driving prices higher with competitive offers.  Well, all the factors that I addressed last month that could have been negatively affecting inventory have certainly swung widely in the opposite direction.  We have now seen a 62% Year over Year increase in active inventory.  However, this has done little to dampen demand, slow price increases, or change the competitive nature of the market

We have also seen a return of the normal seasonal rhythm of our market.  April truly represented a return of our Spring Market at the usual time of year; the Spring time.  We expect this to continue through May and possibly well into June.

There is also considerable speculation as to what will happen later in the year.  We all look forward to an ever increased percentage of the population being vaccinated and an eventual complete reopening of the economy.  But will this cause a bit of a breather in the market at some time in the future?  Will we all suddenly go on vacation, taking Buyers, Sellers and Agents out of the market?  I think there is a good chance of that, but when it will happen is purely a guess.  In a normal year, the market starts to take a little bit of a breather around the last week of May.  In a normal year, everyone becomes distracted with the end of the school year, graduations, or the first opportunity for a family vacation.  Those distractions and the shear exhaustion caused by a busy Spring Market always starts our quieter Summer Market.  We will see when those factors start to kick in.  Perhaps next month we will have a better idea of the timing for a much needed rest in the Market.Now let’s zero in on our Local Market:

Year to Date Unit Volume Sold is on the rise.

      Our entire market is up 76% in Unit Volume Sold Year to Date over last year to date.

The Volume of new listings coming to market is also on the rise.

      Active Inventory is up 62% Year to Date over last year to date.

      With more Inventory and continued overwhelming Demand coupled with increase in the Median Price, the Dollar Volume of Sales is up a whopping 105%.

The Median Price is UP and moving quickly.

      Our entire market is up 16% in Average Price and 25% in Median Price Year to Date over last year to date.

      The good news is that the number of Comparable Sales has begun to catch up with the rise in prices.  This has allowed Appraisers to confirm current valuations.  As a result, we are beginning to see fewer issues with sales prices meeting Appraised Value.  We still have some issues, but not to the extent seen in February and March.

After last month’s verbose recap of the factors affecting inventory, I decided to keep this month’s entry short and sweet.

Until next month, stay safe and healthy.

Update: May 10, 2021

We have had a sudden update that Public Open Houses will return in the very near future.  This is surprising as I believed that the best first step would be to start with in-person Broker Tours and then follow on with Public Open Houses in some limited form.  All Guidelines for Open Houses have not yet been established, but we will discuss this further in June edition.