A New Market?
Posted 01-13-2017 at 11:45 AM by Roy Sanborn
A New Market?
So here it is, 2017! A new year, a new beginning, and maybe the start of a new kind of housing market in the Lakes Region. Perhaps. Why? Well, there were only 587 single-family homes available in the 12 Lakes Region communities covered by this report as of Jan. 1. The average asking price was $730,679 and the median price point was $289,900. These homes have been on the market for an average of 188 days. The current inventory level represents just a five-and-a-half-month supply of homes on the market. Could we be headed into a seller’s market??
Inventory levels on the market as of Jan. 1 have been declining pretty steadily over the past five years. On Jan. 1, 2012, there were 943 homes on the market, 857 in 2013, 749 in 2014, 761 in 2015, 731 in 2016, and now only 587. And, with steady improvement in sales the inventory levels have dropped from a 14.5-month supply in 2012, to 11.3 months in 2013, to 10 months in 2014, 9.2 months in 2015, 7.9 months in 2016, and now 5.5 months. So we have had a 38 percent drop in total available listings on the market compared to 2012 but a 62 percent decrease in inventory levels because of more sales.
This is pretty astounding when you think about it! It may just be that finding that perfect home is going to get a lot, lot harder. This could be especially true for homes under $100,000 where there are 53 percent fewer homes available this Jan. 1 compared to the level available on Jan. 1, 2012. There are 52 percent fewer homes on the market between $100,000 and $200,000, 29 percent fewer between $200,000 and $300,000, 24 percent fewer between $300,000 and $400,000 and 31 percent fewer over the $400,000 mark.
Generally speaking, a healthy, or neutral, real estate market is when you have a three to six month supply of property for sale in your area. This is the first time we have been this low in a long, long time. I think we are a bit away from a true seller’s market where you have less than a three-month supply of homes, but, we have been inching in that direction. We generally see a bump up in the inventory level over the next few months as the spring market approaches so it will be interesting to see we continue the trend downward or how much it goes back up.
So what does this all mean? It really means that it truly is a good time to sell your home if you are considering it. Inventory is definitely down and good quality homes are scarce. So if you’ve got a hankering to move on to points south where it is warm or to a new residence in the Lakes Region or elsewhere, this is a perfect time to dip your toes into the real estate market and see what you can do!
Data compiled using the NEREN MLS system.
So here it is, 2017! A new year, a new beginning, and maybe the start of a new kind of housing market in the Lakes Region. Perhaps. Why? Well, there were only 587 single-family homes available in the 12 Lakes Region communities covered by this report as of Jan. 1. The average asking price was $730,679 and the median price point was $289,900. These homes have been on the market for an average of 188 days. The current inventory level represents just a five-and-a-half-month supply of homes on the market. Could we be headed into a seller’s market??
Inventory levels on the market as of Jan. 1 have been declining pretty steadily over the past five years. On Jan. 1, 2012, there were 943 homes on the market, 857 in 2013, 749 in 2014, 761 in 2015, 731 in 2016, and now only 587. And, with steady improvement in sales the inventory levels have dropped from a 14.5-month supply in 2012, to 11.3 months in 2013, to 10 months in 2014, 9.2 months in 2015, 7.9 months in 2016, and now 5.5 months. So we have had a 38 percent drop in total available listings on the market compared to 2012 but a 62 percent decrease in inventory levels because of more sales.
This is pretty astounding when you think about it! It may just be that finding that perfect home is going to get a lot, lot harder. This could be especially true for homes under $100,000 where there are 53 percent fewer homes available this Jan. 1 compared to the level available on Jan. 1, 2012. There are 52 percent fewer homes on the market between $100,000 and $200,000, 29 percent fewer between $200,000 and $300,000, 24 percent fewer between $300,000 and $400,000 and 31 percent fewer over the $400,000 mark.
Generally speaking, a healthy, or neutral, real estate market is when you have a three to six month supply of property for sale in your area. This is the first time we have been this low in a long, long time. I think we are a bit away from a true seller’s market where you have less than a three-month supply of homes, but, we have been inching in that direction. We generally see a bump up in the inventory level over the next few months as the spring market approaches so it will be interesting to see we continue the trend downward or how much it goes back up.
So what does this all mean? It really means that it truly is a good time to sell your home if you are considering it. Inventory is definitely down and good quality homes are scarce. So if you’ve got a hankering to move on to points south where it is warm or to a new residence in the Lakes Region or elsewhere, this is a perfect time to dip your toes into the real estate market and see what you can do!
Data compiled using the NEREN MLS system.
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