RMLS released market data for July 2016 and I was right! We DO have more houses on the market to sell. We measure inventory by dividing the active residential listings in the month (July), by the number of closed sales in the month (July). July 2016 came in at 1.9 months, up from 1.5 in June. We consider a balanced market (favoring neither buyer nor seller) to be around five or six months.
The market is showing slight cooling in both pending and closed sales. Pending sales are down 2.6% from June and 2.8% for the year to date. Closed sales are down 12.1% from June 2016 and 2.8% for the year to date.
But...the market time still fell (by one day) from 33 days in June 2016 to 32 days in July 2016. Market time in July of 2015 was 45 days. And prices are still increasing. The year to date median sales price rose 11.5% from $304,900 at the same time in 2015 to $340,000 in 2016.
Is the sky falling? No. Has a bubble burst? No. We are seeing some houses sit, and only sell once their prices are reduced. We're still seeing multiple offers and houses selling well over list price. The market time in North Portland is 16 days. And in Northeast and Southeast, 24 and 25 days respectively.
Pricing listings is as challenging as ever. It seems swell priced and well prepared listings are selling quickly and in competitive situations. Speculatively priced listings, and those not in tip top shape, seem to be sitting a bit.
Is it a good time to buy? I'd say yes. Interest rates are at crazy lows. Sellers are feeling the easing in the market and are cognizant of the approaching fall market. We usually see is busy flurry after school starts, but before Thanksgiving. Sellers of properties that aren't selling now have a good chance to get their property sold if they reduce that price and do some spiffing.
Is it a good time to sell? Yes, IF it is priced well. That doesn't mean a fire sale. Prices are still up. And buyers are anxious to take advantage of these great interest rates before they start rising.
You can read the full report here. And since its such a crazy market, feel free to contact me with questions or for guidance.