22 Jul May 2024 Housing Report
With 30ish days in our rearview mirror, we have yet another Housing Report to let soak in. May’s report has more of the same when it comes to the main metrics, but take a look at the blog to catch the slight shift in tone. If you prefer charts and percentages instead, here is your link to the raw data as well.
As I mentioned above, the underlying attitude has shifted ever so slightly in this last message. What’s the main culprit you ask? Affordability! We have been talking about this FOREVER, but the subject of affordability is dominating the dialogue amongst those in and surrounding the industry. With both rates and pricing staying at their pesky high levels, the pinch on buyers is becoming more real. This is especially true as you move up the price point ladder, which if you ask me, is where you are seeing that largest increase in supply. Quick side note…pay attention to that Months Supply figure. They are not wrong in saying that 2.5 months is still well below a balanced market (4-6 months), but it was not that long ago when that number was hovering around 1-1.5 for an extended time.
So what’s my tip of the month this time around? Continue to be patient on all fronts. Do not settle if you are a buyer and realize that a possible lull in the listing market will not last forever. If you are a seller, be careful not to panic and start dropping your price to a market that is potentially taking a pause. Those price drops can fall incredibly flat because often, they are going to a weakened, uninterested buyer pool, which just puts you in a worse position. Remember, a summer swoon is honestly not atypical when looking at the years prior to the pandemic. Take a deep breath as your patience at this stage will pay dividends in the end. 😀
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