The market statistics for July have only one way to describe them… RECORD BREAKING!
Single Family Homes
The trend of seeing homes go under contract began in June with a shattering 7,000 homes under contract as opposed to our normal 5,000 homes. As of last week, we had a record-breaking 30,000 showings scheduled for detached single-family homes, meaning buyer demand has surged this past month. Some of this pent up energy is caused by April’s state closure as well as a potential second closing of the state looming ahead. This demand is only exacerbated by the low inventory; we are 46% below the number of units we should be in July as well as interest rates falling below 3% – something we haven’t seen in over 50 years.
If you’re curious how much equity you currently have in your home take a look here.
Townhomes, Duplexes and Condos
While not as extreme, the attached single-family homes are continuing to experience strong market activity and we currently 11.4% ahead of how many units we typically see under contract. What is remarkable is the downtown condo market. While most areas are staying strong, we are seeing about 9.5-10 months’ worth of inventory. What this means is we have a high number of units on the market and not as many buyers interested in those particular units. The effects of COVID on downtown activities, the closure of social areas like pools and gyms, along with the average price point of $700k have all attributed to this slowdown. This brings an opportunity for buyers to strongly negotiate, and many units now offer a year’s worth of HOA dues or more!
We are seeing an abnormal continuance of the spring market. As we head into the next few weeks of July, it is important to know that high demand exists and selling above and beyond asking price is very possible. When it comes to a balanced market, we are only 12.3% of the way there and would need between 46,000-80,000 active listings to go into a balanced or buyer’s market. Right now, we are sitting at 5,700 active units for perspective.
Statistics provided by Megan Aller, First American Title.