As we begin to move into the fall, it’s time to take a look back at the final month of the summer in Summit County, and see if there are any particular trends we should be aware of.
As always, the market is still hot, with many buyers looking for their dream homes. And with the right partner at your side, you can find the perfect home at the right price for you!
Let’s take a look at some of the details from July!
Last Week's Real Estate Market Overview
Over the past seven days, here's what we've observed:
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New Listings: 33 properties have been freshly listed. If you're a buyer, this offers you an excellent selection to choose from; if you're a seller, it gives you an idea of the competition.
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Pending Sales: 39 properties have gone under contract. This indicates a strong buyer demand, suggesting that it's an excellent time to consider selling your property.
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Sold Properties: 42 properties have closed. For sellers, this highlights the market's effectiveness at converting listings into sales. For buyers, this points to a market where decisions may need to be made relatively quickly.
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Price Reduced: 47 properties have seen price reductions. This often signals that sellers are keen to attract buyers and are willing to negotiate. This could be an opportune moment for buyers to step in and negotiate a favorable deal.
For Buyers: New listings mean more choices but also more competition. The number of pending sales suggests that desirable properties are moving quickly, so it's essential to act fast.
For Sellers: The number of sold properties and pending sales indicates a robust market. However, the number of price reductions could mean you'll need to price your property accurately to secure a sale without having to reduce later.
Active Listings: The Current Landscape
For those of you keeping an eye on active listings:
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As of July this year: There were 194 active listings
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As of August 22: The count is 871, showing a decrease from 1,002 a year ago. Clearly, inventory is being absorbed.
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Total Choices: Currently, the residential market offers 450 active listings.
For Buyers: The increase in active listings since July offers more options but also indicates that there's a surge in market activity. It's vital to keep an eye on these numbers as more choices often mean more competition.
For Sellers: While the active listings have increased since July, they're lower than last year, meaning inventory is being absorbed. This can be a favorable environment for sellers, especially if this trend continues. The fewer the listings, the less competition you have.
These stats on active listings give buyers and sellers crucial information for strategizing their next move in the real estate market. With inventory gradually being absorbed, timing could be crucial for your real estate decisions, making finding the right agent even more important.
Single Family Homes
Average and Median Sales Price
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Average Sales Price: We've seen an impressive surge from $1.6 million in July 2022 to $2.2 million in July 2023—an uptick of 37%.
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Median Sales Price: The median price has also increased but at a slower rate, moving from $1.6 million to $1.8 million—a 13% rise.
Year-To-Date Analysis
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Average Price: Despite the recent spikes, the year-to-date average has declined by 9.3%, going from $2.2 million to $1.99 million.
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Percent of List Price: Sellers are getting about 96-97% of their asking price—a very strong number.
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Days on Market: Properties are spending fewer days on the market, with a decline of 17.5% to just 33 days.
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Months Supply of Inventory: This has edged up to 5.4 months, providing a slightly larger window for buyers.
For Buyers
Given that properties are spending fewer days on the market, you'll need to act quickly. However, with a 5.4 month supply of inventory, there's a bit more breathing room than before.
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Strategy: Be prepared to make strong offers, given that sellers are getting close to their asking price. Take advantage of the slightly increased inventory, but don't hesitate for too long as properties are moving quickly.
For Sellers
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What it Means: The remarkable increase in both average and median sales prices indicates a seller's market for single-family homes. Plus, with properties spending fewer days on the market, now might be an excellent time to sell.
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Strategy: Given that you can expect to get around 96-97% of your list price, pricing your home correctly from the outset is crucial. With inventory starting to creep up, keeping an eye on competition and being prepared to act quickly could be key to a successful sale.
Townhomes and Condos
Average and Median Sales Price
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Current Average Price: We've noted a slight dip of 3.4% in average sales prices, from $879,000 to $849,000.
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Year-To-Date Average Price: Despite the recent dip, there's been a year-to-date growth of 1.5%, moving from $816,000 to $828,000.
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Median Sales Price: The median price has shown moderate growth, with a year-to-date increase of 2.5%.
Other Key Metrics
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Days on Market: Properties are taking longer to sell, with an increase of 22 days from the previous 12 days.
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Percent of List Price: Sellers are achieving a robust 98% of their listing price.
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Month Supply of Inventory: Inventory levels are holding steady, with around a 5-month supply.
For Buyers
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What it Means: While prices have dipped slightly recently, the year-to-date numbers indicate a generally stable market. However, properties are taking longer to sell, providing you with a bit more negotiation leverage.
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Strategy: This could be a good time to get into the market, especially if you can find a property that has been on the market for a while. Take advantage of the longer days on the market to negotiate, but remember that sellers are still getting close to their asking price.
For Sellers
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What it Means: Despite the minor decline in the average price, the strong percent-of-list-price figure and stable median growth suggest that sellers still have a favorable environment.
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Strategy: Given that you're likely to get around 98% of your asking price, your pricing strategy should be accurate right from the start. Keep an eye on the days on the market for your category as it has increased; this might mean you need to be more patient or flexible during negotiations.
Market Trends and Observations: The Balancing Act of Price and Pace
The Plateau in Pricing
After a period of rising property values, we've reached a leveling off in terms of pricing across both single-family homes and townhomes/condos. This plateau signifies that while there is still strong interest in the real estate market, there are limitations to what buyers are willing or able to pay at this point.
Speed of Sales
Despite this stabilization in pricing, the speed at which properties are selling remains high. This suggests that while buyers are becoming more discerning with their choices, they are ready and willing to act quickly when they find a property that suits their needs and is priced appropriately.
The 'Days on Market' statistics—especially for single-family homes—are telling: a 17.5% reduction to just 33 days on the market indicates a brisk pace of sales.
The Dual Market Phenomena
This leads us to what I like to call the "Dual Market Phenomena": properties that are priced reasonably according to current market conditions are flying off the shelves. In contrast, listings priced too ambitiously languish, often requiring price reductions to attract buyer interest.
Our data shows that 47 properties' prices were reduced in the last week alone, a clear sign that overpricing can lead to stagnation.
A Word of Caution on Pricing
If you're a seller, this isn't the time to test the upper limits of the market by setting a higher listing price than what the current conditions support.
Remember, overpriced homes risk sitting on the market and can eventually sell for less than they might have if priced correctly from the start. Buyers today are savvy; they have access to plenty of information and won't bite on an overpriced property when there are reasonably priced options available.
Final Thoughts
In summary, we find ourselves in a nuanced market. On one hand, it offers opportunity and quick sales for those who price their properties according to the reality of current conditions.
On the other hand, it's a market that can be unforgiving to those who set their pricing sights too high. Either way, a well-informed approach is crucial, whether you're buying or selling.
For personalized advice that takes into account your unique circumstances and goals,
don't hesitate to reach out to me. I'm here to guide you through these complex market conditions to help you make the best possible decisions.
