October brought fewer home sales and increased inventory. Here’s what that means for our market.
Today we’ll be looking at our latest numbers from October, as well as what they mean for our market in the near future. Here’s what I found.
We had 2,447 sales in October 2017 and 2,205 in October 2018—we’ve gone down a little bit as you can see. We’ve also seen the slowest growth in home appreciation since 2012. Though these numbers may seem scary, our market needed to slow down after the double-digit appreciation we had seen.
This doesn’t mean our market is crashing. Instead, the market is simply changing. New construction has continued to hit the market and we’re seeing 3.1 months of inventory, which gives buyers many more opportunities. Interest rates are up, yes, but buyers now have more homes they can choose from.
Sellers now need to think more about pricing realistically, especially during this time of year. We’re not only seeing a downturn in general, but a seasonal downturn as well.
It looks like our fourth quarter will have slower growth with increased inventory and days on market, but homes will still be selling. 2019 is looking to bring higher interest rates and even more inventory to our market. We’ll also see slower appreciation, neutral appreciation, and in some markets, we may even see some depreciation.
If you have any questions or need more information, feel free to reach out to me. I look forward to hearing from you.