This summer is going to be hot, and I’m not just talking about the weather. The real estate market is heating up too! We had over 3,300 new listings hit the market in all of April. That seems like a lot until you compare it to May.

There were 1100 properties listed in this week alone (5/14-5/21), and with 61 more properties set to “Coming Soon” status in the last 24-hours, it suggests at least another 500 properties could come available by this week’s end.

Here are a few things I find interesting as I’m looking at the stats from the last 3 months.

The terms are defined below.

1.      In April 2023, the median list price was $34,000 higher than the median sale price. In April 2024, the gap widened to $50,000.

2.      The median active price from December 2023 to April 2024 was:

a.      December - $340,000

b.      January - $345,000

c.      February - $350,000

d.      March - $360,000

e.      April - $368,000

3.      The new median list prices and sold prices have gone up too from January to April (list/sold):

a.      December - $290k/$298k

b.      January - $300k/$289k

c.      February - $305k/$300k

d.      March - $320k/$310k

e.      April - $340k/$318k

4.      The Sold to List price ratios between January and April have been going up. In January, houses were selling for 96% of their list price. In April, it’s 99%.

5.      The average days on market peaked in February this year at 38 days and dropped to 29 days in April.

So what does all this mean? In a nutshell, it means that interest rates are driving the market. The current interest rates are at 7.01% to 7.575% for a 30-year fixed rate mortgage. Over the last few months, we was higher priced houses stay on the market longer and selling for less. However, with the summer coming, so is the selling season. Homes are beginning to sell closer to their list price and in the coming months, we’ll see 100% return, and perhaps even the 101% of list we saw last summer.

Do you remember when we said in December that “now” was the time to buy? Well, now is the time to sell. It is being predicted that interest rates will come down further as we get deep into the summer months and autumn. While they have begun their decline, with the election around the corner, we expect to see a steeper decline. Just how much they’ll come down remains to be seen. Nonetheless, people still need to move, and houses still need to sell.

 Terms:

 ·         Median - the middle price where half of the total is higher, and half is lower.  

 

·         The Active Median List Price defines the list price that is being carried over from the last month, or the median price that didn’t sell last month.

·         The New Median List Price - the price houses were being listed for that month.

·         The Sold Median Price - what all houses sold for in that month.