In the month of April 2017, 2,890 homes were sold through the MLS. This is down 2% month over month and down 7% year over year. Despite this drop in the number of units being sold the near term momentum of spring selling season continues to rule the day as the median home price rose from $575,000 in March to $599,900 in April!
Inventory levels drifted upward from ~1.6 months of supply to ~1.7. This though this is a slight change it suggests we won’t see the kind of appreciation in May that we observed in April.
Recall that days on market is a leading indicator of future home appreciation. As it falls future home prices will likely rise and vice versa. In April the days on market before a newly listed home went under contract moved from 12 days to 11 days.
These are absurdly low levels and are near a lower bound. If a property is getting multiple offers on it and a seller is countering offers to various buyers it takes time. In other words days on market is never going to fall much further because mechanically gathering and countering offers takes time. We continue to counsel our buyers that have time before making a purchase to hold off until fall and we continue to counsel our sellers to put their home on the market now. If you are thinking about selling and market conditions are a consideration, they don’t get stronger than they are today.
Bob Flynn, May 2017