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Despite a growth in active inventory and a fall in sales, the prices continued to climb in June! What does this tell us about the current state of our market?
Year-over-year the Median Sales Price increased by 9.9%, just a tenth of a point below a double-digit increase, and the Average Sales Price followed in the same direction, increasing by 3.8%. The reason for a nearly double-digit increase in the median sales price is largely due to the nature of the interest rates. When the interest rates were near an all-time low a year ago many people qualified to buy houses at a higher price, but now people have had their price range for financing fall, additionally, some buyers on the more affordable side may have backed out of the market now that interest rates have raised monthly mortgage payments to levels they may believe they cannot afford. All that adds up to a near 10% higher median sales price.
The month-over-month increases are not small whatsoever, with an increase of 6.8% on the median sales price and 7.3% on the average sales price. While these are definitely prone to major fluctuations monthly it is worth noting that it makes since for the increase of these to happen as the DOM for sales fell to 8 days. The reason i say that is because when you have more buyers competing for the prime new listings coming to market you will find the prices rise and the DOM fall, but as we see with active inventory buyers are not responding the same to every property on the market.
It will be interesting to see how the market will respond in the coming months to the rise in inventory we experienced this month, but one this is for certain. Homes that are in great locations, in pristine condition, and in highly sought-after price ranges will continue to move faster and at a higher price than homes lacking that desirability.
Jacob B. Mitchell
Cell: 706-581-6401
Office: 706-226-5182
Email: AgentJacobMitchell@gmail.com
www.RealtorJacobMitchell.com
Coldwell Banker Kinard Realty
