Important information about our real estate market you need to hear.
Today, I’m here to review the real estate market for April. Let’s begin with the number of available homes.
Currently, there are 15,976 homes on the market, compared to 9,889 homes at this time last year, representing a significant increase of 161% in available homes for sale. However, the number of homes under contract has decreased by 9%, with 10,161 homes under contract now compared to 11,171 last year. Additionally, 7,093 homes closed in the last 30 days, indicating a 24% decrease from the 9,622 homes closed during the same period last year.
Looking at the projected sales for this year, we expect 75,557 sales, which is a 31% decrease from the 109,233 sales recorded last year. The supply of inventory has also changed, with it currently standing at 1.7 months compared to 0.7 months last year. This is a substantial increase of 242% in the monthly supply of inventory, indicating a growing number of homes available for sale.
Despite the increase in inventory, the market is not balanced between buyers and sellers. A balanced market would have a supply of approximately six months, so this is far from that. If the supply exceeds six months, it becomes a buyer’s market, characterized by an excess of homes and declining prices. Therefore, the current 1.7 months supply is relatively low.
“The market is normalizing, but not balanced.”
It’s important to note that there are just under 16,000 available homes and 10,000 homes under contract, illustrating limited inventory and a significant number of buyers. The perception of the real estate market may be influenced by factors such as high interest rates, which are currently around 6.5%. Nevertheless, these rates are still considered low historically.
Prices have decreased since 2022, and while the possibility of further correction or price increases due to inflation exists, it’s crucial to consider individual circumstances. If the cost of renting is comparable to or higher than owning a home, it may be advantageous to pursue homeownership.
For those waiting for the market to return to the conditions of last year with multiple offers and bidding wars, it’s important to recognize that such markets are not commonplace and may take time to recur. The current market can be described as normal, with the only anomaly being the shortage of available homes for sale. Therefore, putting a home on the market at the right price can result in multiple offers.
It’s worth noting that buyers now have twice as many options compared to last year, as the number of homes for sale has doubled. This situation presents multiple advantages for both buyers and sellers.
If you know anyone thinking about buying or selling or you’re thinking about it, let me know. Call me at (602) 738-9943 or send an email to jason@thepenroseteam.com. I’d love to talk with you!
