Get the latest analysis on real estate trends, including inventory levels and pricing insights.
The housing market is experiencing a subtle but important shift, with the absorption rate revealing a growing inventory and longer selling times. This trend, observed between July 2023 and July 2024, has implications for both buyers, who may have more choices, and sellers, who may need to adjust pricing strategies.
It’s dynamic and ever-changing, and today, we’re examining the latest trends and numbers shaping our market.
Absorption Rate Overview. The absorption rate measures how long it would take to sell all current inventory. Comparing July 2024 to July 2023, it took over a month and a half to clear out inventory last year. This year, it’s taking just over two months. This slight increase indicates a growing inventory, though not enough to make a significant impact on buyers and sellers just yet.
Year-to-Date Comparisons. Year-to-date data shows that in 2023 it took just under a month and a half to sell off inventory. In 2024, it’s taking a little under two months. The increase in inventory is causing a slight slowdown in the market, with homes taking longer to sell.
“Homes take a little longer to sell, but the market remains strong.”
Median List Price vs. Median Sales Price. In July 2024, the median list price was $330,000, up from $309,000 in July 2023. Sellers are still confident in asking for higher prices, but the gap between list price and sales price is widening. The median sales price is currently $280,000, compared to $275,000 a year ago. This suggests that while sellers are listing high, they’re often accepting lower offers.
Inventory’s Impact on Pricing. The slight uptick in inventory has led to a broader margin between what sellers are asking for and what they’re willing to accept. This trend indicates sellers may need to adjust their expectations as more inventory enters the market. Additionally, the median days on the market have increased slightly to about eight, compared to six days last year.
Days on Market. While the average days on the market can be skewed by outliers (homes that took much longer to sell due to overpricing), the accurate measure is that most homes should sell within about a week if priced correctly. Homes are taking a little longer to sell, but the market remains strong, with inventory selling in about two months.
While the housing market remains active, the observed shifts indicate a move towards a more balanced environment. This presents both challenges and opportunities for buyers and sellers. By staying informed about these trends and adopting flexible strategies, you can successfully adapt to this evolving landscape and achieve your real estate goals. To learn more, call me at (502) 458-2722.
