Mid-year market update

RMLS released the market statistics for June.  This gives us a mid-year glimpse at the market.

I usually keep track of three factors, and feel these can give a pretty good sense of the market; median price (and percentage change), market time, and inventory.

The June's median price was $417,900, with the year to date median price at $400,000.  From June 2017, this is up 7.2%, up 2.2% from May 2018, with the year to date percentage change of 6.7%.    In 2017, the median price was $390,000, and the year to date price was $375,000; year to date change of 10.3% .  Its really that year to date percentage change on which I keep my eye.  When I talk about a slowing market, I'm talking about the speed at which our median price is increasing

Market time can also be seen on the chart above.  There isn't much change here; May and June 2018 had the same market times, 2017 and 2018 year to date are the same at 48 days.

Our look at inventory is calculated by dividing the active residential listings by the number of closed sales for the month.  So far inventory in 2018 has been equal to or greater than the two previous years.  Our market usually sees a summer slow down in July and August, and even into the fall.  It looks like that slow down came early this year.

The rate of increase in prices is slowing, we have more houses in relation to sales, and our market time is holding steady.  I'm glad to see a slowing in that rate of price increases.  6.7% is still a healthy rate, and outpaces the increase in wages in our area.  The price increase, combined with rising interest rates can make it hard for buyers to save as quickly as the cost of buying is going up.

Is it still a good time to buy?  I think so.  But, don't buy thinking you can sell in a year, without doing any work, at a profit. If you're buying today,  plan to stay for three years or more.  Is this a good time to sell?  Yes.  But don't bank on multiple offers and bidding wars.  Yes, we do still see multiple offers and bidding wars.  But we also see overpriced houses sitting, lowering their prices while buyers stay away.  Buyers worry about what is wrong with that hasn't been snapped up.  Sometimes, the only thing wrong is the price.

As always, I'm glad to answer any question you might have, or to talk about your specific situation.  leslievjones@gmail.com  503-312-8038.