July 2023 Market Recap:
Below are some statistics for various counties, median sale prices for cities, and a closer look at inventory levels (year over year) by county. We’ve identified low inventory levels to be the single most driving factor in our local market.
The persistent shortage of inventory can be attributed to the "lock-in effect." This suggests that homeowners are hesitant to sell their properties and make new purchases due to the financial repercussions of moving away from historically low mortgage rates, which currently stand at around 6% or 7%. Many potential sellers are choosing to retain their homes as rental properties or are opting for significant additions or remodels to align with their changing living requirements. However, the majority are taking a wait-and-see approach, hoping for interest rate reductions in the near future.
Our region is experiencing a considerable backlog of housing demand. Even with higher interest rates, the high demand combined with the scarcity of available properties, has contributed to the stability in our marketplace. Homes that are appropriately priced and thoroughly prepared for the market are selling swiftly and often attracting multiple offers, frequently surpassing the listing price.
The following graph illustrates inventory trends across per county. It highlights seasonal patterns over the past three years and clearly shows that current levels are significantly lower than prior years.
