The February Real Estate Market summary shows that we have a severe lack of inventory. When it comes to active listings we are still in the same position as we have been for quite awhile. Detached properties in price points $600,000 and under are a sellers market. $350,000 and under there is less than three months inventory. Townhomes and condos $500,000 and under are in a sellers market. Price points of $350,000 and under are less than two months inventory.
When there is a lack of inventory it hurts everyone. It take buyers a longer time to find a home and in many cases they will be in a multiple offer situations. This means that a buyer will pay more for the property. Here is a good example, I had a property that I listed in East Cobb for $190,000. I had 15 showings and 4 offers. I call for highest and best, which means best price and terms for each buyer that submitted an offer. The final sales price was $201,750 and bought as is. That is what happens when you are in a sellers market. Lack of inventory hurts sellers too. Yes, they do get maximum price and terms, but when they sell their home they have no where to go. So increasing inventory a little will help everyone.
Side note: Interest rates are still holding and the Fed decided not to raise the short term interest rate at their last meeting. Take a look at the current monthly market summary.
Detached Homes - market summary
- Active properties are -5.1% lower - compared to January 2016
- Sold homes are up +10.5%
- Total distressed property sales are -4.8% lower than same time last year - it was 8.9% in January 2016 and it is now 4.1%
- Average months supply of listing is down -12.1% to 2.9 months (very low supply)
- Median List Price is up from $239,900 to $253,202
- Median Sales Price is up +6.0% to $242,000
- Median Days on Market is down -23.6% compare to January 2016 - it went from 55 day to 42 days. This is due to lack of inventory
Attached Homes - market summary
- Active properties for sale is down -3.4%
- Distressed properties are down -4.7% to only 2.2% of all sales
- Months supply of listings is at 1.9 months which is down -13.6%
- Median list price is up +10.8 percent to $204,900
- Median sale price is up +9.5% to $197,000
- Median sales to list price is up from 96.9% to 97.5%
For more information about the trends analysis, current statistics, and overall breakdown by price point read the market reports below.