This Market Update is courtesy of the Cromford Report.
Supply between $200K-$250K has Risen 8.1% since May
Seller Price Reductions Up 7% in Popular Price Range
If you have a home listed between $200,000 and $400,000, then you make up 48% of everything that’s listed in the MLS. Listings under contract in this price range, have averaged 7.4% higher in volume than 2017 all year, until now. Over the last two weeks,including the end of July through the first week in August, listings in escrow have dropped to 2.2% below last year’s level. Buyeractivity is expected to slow seasonally from the peak in April through the end of the year; however open contracts have dropped 26% sincethe 2018. April peak compared to a lower 20% drop in 2017 over the same time frame; all while corresponding supply has been rising. Sellers haven’t seemed to notice this sharper decline as their average asking price per square foot has soared from just 3% higher than last year in March to as high as 7% higher in July. The average sales price per square foot was up 5.9% in July, compared to 4.6%in June. However, price is a lagging responder to shifts in supply and demand. We will have to wait andsee if buyers accommodate sellers’ price expectations given that they have more to choose from in the marketplace right now.