Low Inventory Keeping Prices Artificially High

April 2023 Update:

The story this month is still the lack of sales compared to the same time last year. Sales volume is down about 35%-40% from what it was.  This is not a surprise, as this time last year interest rates were significantly lower and the public was racing to buy before they skyrocketed up.  Demand still remains decent, but buyers have more leverage and we are not seeing 10+ offers on a home like we did a year ago.  Prices are down from the peak, but if they were down about 10% city wide at the end of 2022, that depreciation is shrinking and they are only down about 5-7%  We see this as a good time to buy before inventory shrinks more throughout the summer and that limited inventory causes prices to artificially rise.  

Every year, by at least March, we hope to see inventory rise after a high number of new listings come to market, which easily accommodates the increase in sales we also tend to see in the first half of the year.  Although, while a greater number of listings are not selling, the number of new listings declined each month in the first quarter of 2023.  Typically, inventory grows in the first half of the year, peaking in June or July. We don’t expect the inventory growth in the second quarter to make up for the decline in the first quarter, keeping the supply of homes and, in turn, total sales lower for the rest of the year.  If active listings drop further in the second quarter, we could easily see home prices move significantly higher into the summer.