Days on Market rose from 17 to 19 Days to get a purchase contract on a residential home. Taking a bit longer for homes to sell.
Inventory Levels rose from 1.8 months to 2.2 months supply. Indicating a bit slower market than previous month. Indicating the rate at which homes are selling has slowed down.
List to Sold Price Ratio fell from 100% to 99%. This does not account for concessions & incentives sellers may offer buyer to close the deal, such as paying for buyer’s loan closing costs.
Active listings rose 3472 to 3996 resulting in some pooling of inventory which correlates with the days on market rising.
Federal Reserve Prime Rate rose from low of 5.5% in September to now 6.25% lending to less money in the market.
Click video to watch Matt’s take on October’s market
We still have a shortage of inventory. People have been migrating out of high value metro areas absorbing what little is available. That money, market equity, will eventually run out.
The missing inventory is a result of builder supply. Builders provide the homes to accommodate community growth. There are current supply chain issues leading to longer build times. What historically took three to four months is currently taking over a year. This production backlog is the underlying issue for our shortfall in inventory.
Our currency is debt based, meaning; the lower interest rates are the more money is in circulation. We all know there is less money in our market right now as result of higher interest rates.
We have yet to realized an adjustment in home values because inventory levels remain low, keeping the prices high. Once builders sort out the supply chain issues and increase production there will be more homes competing in a market with less money.
What concerns do you have about this market?
I have experience across a good and bad markets over a decade working as a full time salesman. Drop me a line I’d love to hear your thoughts on this market and see how I can be of further service to you…