There is a distinct chill in the air. The 2018 real estate market is going to go down as the year that the 6-year, extremely hot run in housing came to an end and downshifted considerably. Taking a closer look at the active listing inventory, every single price range has considerably more homes on the market today compared to last year. Overall, there are 2,077 more homes, up 40% from last year at this time. Typically, the inventory peaks between July and August. When the kids go back to school, fewer homes come on the market and many unsuccessful sellers throw in the towel. But, this year, the active inventory has yet to peak; it is still growing.
Demand has diminished like it cyclically does during the Autumn Market, but it is dramatically down compared to last year, off 18%. Demand is down in every price range and there are 419 fewer pending sales. It sits at 1,974 today compared to 2,393 in 2017. The overall velocity of the market today is much slower. Today’s sellers need to understand that housing is not going to suddenly tilt back in their favor. Carefully pricing is critical. 64% of all closed sales in September reduced their asking price at least once.
Unfortunately, there was no Oktober-Housingfest this year.