Back in 2014, we saw that the active amount of listings on the market was about 25,000 and the number of days on the market was 117. 20,000 to 30,000 homes (SFD, townhomes, condos, mobile homes) on the market is about average, at least in the last 30 years.
The bottom of our market, price-wise, was back in 2011 when we were coming out of record high inventory. Upwards of 56,000 listings were for sale in the crash era.
In 2015, the market, following the 2011 bottoming out, began moving in favor of sellers and numbered about 20,000 homes for sale. Fast track to October of 2019, we were down to 13,000. Then, in February of 2021 we had less than 5,000 homes available to buy. That amounted to 15 days of inventory. Listings rose again slightly, but then came back down in March of last year – one year ago, and again inventory was at less than 5,000.
Then, mortgage rates began climbing into the 7% range, which combined with the higher cost of our homes, eliminated many from buying. The number of listings rose to almost 20,000 in November of 2022 – just 8 months!
Now what?
When inventory rose, we were encouraging buyers to act. We believed that this could very well be a great “window of opportunity.” It still is. However, interest rates have been trending downwards now to the low 6% range. As a result, our market is again reversing course. We’ve gone from almost 20,000 homes for sale and in no time, we’re down to 13,500 currently. From 80 days of inventory to 65 in the blink of an eye.
Demand will continue to increase, and unfortunately, supply is again dropping.
Buyer, time is no longer your ally!
Mike Bodeen
