As prices peak, demand slows.
Sellers have controlled the residential market since 2013, and notched price gains every year. So good news: in almost every town we study, average sale prices are up again since 2017.
Now, in 2018 the market has bumped into a ceiling. Uncertainty about ramifications from the tax reform, impactful interest rate hikes, and simple resistance to current price levels, have combined to starkly reduce demand at the top price brackets in most towns. Less demand brought price reductions back to the market as sellers discover they cannot all surpass last year’s results this year. So while prices have risen, there are more homes left on the shelves as the season wanes.
In nearly all towns, there is significantly more slack in the inventory priced above the median. In some towns it will take twice as long to absorb the higher priced homes than the lower.
The second chart shows Y-O-Y inventory increases in almost all towns. The chart measures a 6-month lookback from August 15th each year. Is this the entire impact of the interest rate and tax changes? Let’s look again in 6 months.
Please click below for the market update of interest to you:
Westfield by Grade School:
Scott Gleason firstname.lastname@example.org