Housing Inventory Rising but Market still Favours Sellers
This summer’s weather may feel more like a traditional spring, but it is definitely summer in the housing market. Sales are still taking place, but at a somewhat lower level than was the case a few weeks ago. As I said last week, that’s all quite normal.
Let’s look at inventory levels. The table below shows sales of SFHs for the last twelve months (LTM), pending sales (contingent and under agreement), and houses available for sale. While inventory levels throughout Essex County and Massachusetts are up 13-15% from a year ago, supply is still comfortably below the 6 months which is generally regarded as representing a market in equilibrium between buyers and sellers.
The condo market remains tight, as it has been all year, with supply at 3 -4 months, while the number of available condos has increased only slightly.
Last month I introduced a new statistic, the ratio of pending and available properties to available. The hypothesis here is that towns with low inventory will have a high ratio, and that is born out by these figures. What I will be watching for is changes in these relationships over time.
Source: MLS, Oliver Reports
If you – or somebody you know – are considering buying or selling a home and have questions about the market and/or current home prices, feel free to contact me on 617.834.8205 or Andrew.Oliver@SothebysRealty.com.
Andrew Oliver is a Realtor with Harborside Sotheby’s International Realty
Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty
Affiliates LLC. Each Office Is Independently Owned and Operated