It’s always a good idea to look at a real estate market recap so that we know where things are going. Our local markets are trending toward becoming more balanced. This normalization is a good thing! It means we are moving into a more healthy market. Prices are adjusting to more appropriate values instead of being solely based on scarcity. Days on market still point to a high number of buyers, but inventory points toward the booming seller’s market beginning to cool down a bit.
Market Recap: Q2 Statistics
Days on Market and Inventory combined give us the pulse rate of the market, which is called months supply of inventory (MSI). A neutral market is when this number is at 6 months. A market that generally favors sellers is usually defined as any market with an MSI of less than 6 months. A market that favors buyers is an MSI of more than 6 months. Most market experts agree that 4-5 months supply is average, so the numbers still suggest we are living in unprecedented times!
While the market still favors sellers, seemingly gone are the days of the crazy multiple offers on every deal as inventory increases. We are now seeing more and more price reductions because sellers were still trying to capitalize on scarcity. Days on market is low which is great for most people looking to sell, but as inventory continues to rise this number will also continue to rise. Our advice is to always use a Three Sixty REALTOR® to help you price your property right in order to have the best real estate experience possible!
Buyers Now Have More Choices
While it’s true that buyers now have more choices, the inventory deficit won’t right itself overnight. Rising interest rates caused some pause and caution, but they are still very much historically low! A concern is also rising inflation rates on most goods and services. Many believe real estate purchases to be the best hedge against that inflation. As always, we recommend having the expertise of a Three Sixty REALTOR® to help you navigate this buyer saturated market!
We hope this market recap of Q2 2022 has been helpful. There are reasons to consider both buying and selling in our current market! We would love to be your personal market experts for the process. Start a conversation with us today and let us be your guide!