Prices went down a little bit in July… Because the rates are high, and all the buyers left the market, right?Ā š¤Ø
-Ah…No. Prices were up again in July and we still have an imbalance āļø of supplyĀ
and demand.Ā
Why are Prices Still Going Up when buyers are sidelined due to interest rates?!
I want to read a quote to you from Lawrence Yun, who’s the Chief Economist
for NAR. This puts it in perspective He says, “We need 50% more listings to reach pre-pandemic
2019 housing inventory levels. And we need 100% growth in listings to reach an adequate
supply.”
So as a result, the average sale price was 104 to 105% of the listing price in Fairfield
and Westport in July. And the accepted offers compared to the total available listings were
also way higher than pre-pandemic levels. It has gone down a little bit from the past two years,
but compared to 2019, accepted offers accounted for 27% of the active listings in Fairfield,
which was DOUBLE what it was in 2019 (13%), and 15% of the available listings had accepted
offers in Westport, which was TRIPLE what it was in 2019 (5%). So there is still extreme demandĀ relative to the supply.Ā
What’s the Good News?
š” The GOOD NEWS is that rising prices mean that, on the sale side, youĀ
enjoy a high sale price. On the buy side, when you get into your new home, you can enjoy equity
from the continued appreciation āļø in prices.Ā
š” New listings š are also coming on the market eachĀ day. We have 46 new listings on the market in Fairfield and Westport as we speak.Ā
š” And the marketĀ time ā° is a little bit longer. Instead of just a few weeks before something flies off the shelf withĀ an accepted offer, now listings are staying on the market for an average of one to two monthsĀ before going to contract, so you have a little bit more time to make decisions š .Ā
š” And who knows,Ā MAYBE RATES WILL COME DOWN at the end of this year or next year š!Ā
So, send me a note now, and when you come back from yourĀ summer vacation, think about making your move! You can also see all the July stats here.
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