Trump, Physics, and the Housing Market

The number of Active homes on the market climbed again. February ended with (287) New Homes and (133) Resales. The total rose from (388) in January to end February at (419). This is a concern because when supply exceeds demand, it affects both the Sales Price and Days on Market. Good news for Buyers though? Not really, since most Buyers need to sell their home first.

RESALES:

Here’s the “ripple effect” of too much supply. Sales Prices dropped significantly, ending February 15% below January and over 9% from the preceding 4-month average. In addition, the Average Price Per Square foot also dropped, and the Months of Supply increased and is now approaching 6-months.  Although the number of homes Sold increased in February, it is still down from the preceding 4-months. Not the trends we would like to see…

NEW HOMES:

Well, the New Homes were a stark contrast to the Resales with Sales Prices holding steady, and although the Average Price Per Square Foot dropped, it was only because they were building lesser-priced homes. However, the number of homes Sold rebounded impressively by nearly 50% and the Months of Supply decreased significantly by 30%. These results show why New Homes are such strong competitors.

WHEN TO SELL?

This has been a very volatile market for the last couple of years. Sales velocity, Days on Market and Home Prices vary almost on a month-to-month basis. And, the Election results will have a significant impact too. In short, lots of changes to the market. So, if you would like a FREE market analysis to see what your home is worth, just reach out to us. We’d be pleased to help you. We’ll also provide insight about when is
the best time FOR YOU to buy or sell.