Is it Fall?

As I (Lee) was driving my girls to school Friday morning, my car was telling me it was 38 outside and the weather forecast was calling for it to be in the high sixty’s today. I have heard several people wishing the cool weather would arrive and stay around for a while and I can’t say I blame them. Our local real estate market normally cools down some in the fall as well, but as you can see below, seller’s don’t have to break out their winter jackets quite yet.

Based on numbers from our local MLS system (Real Estate Information Network) the number of homes for sale across Hampton Roads continues to go down. In September 2017 there were 10,459 properties listed for sale, which is 510 fewer homes than in September 2016. Plus, it is a reduction of 392 homes from the month before (August 2017).

To put the number of properties for sale in better context, you need to look at the months’ supply of inventory. You get that number by dividing the total number of homes for sale by the number of homes that sold month. Said another way, if the demand from buyer’s stayed the same and there weren’t any other houses listed, how many months would it take to sell all of the homes that are currently listed? The month’s supply in September 2017 was 4.81 months. Between five and seven months’ supply is considered an average market, and, the lower the number, the more bargaining power seller’s traditionally have. Last year (September 2016) the months’ supply was 7.85 and locally it was over 10 during the bottom of the last recession.

Both the statistics and our experience show home prices creeping up. The median sales price was up 3.84% in year over year numbers, while the median sales price for the third quarter of 2017 was up 2.13% over the third quarter of 2016.

Sellers sometime wait until Spring and Summer to list, but with the inventory level low, if you know you are going to move, we should go ahead and talk through the pros and cons of listing now. Give us a call (Lee: 757-726-SOLD (7653) or Harry: 757-434-9084) or just reply back to this email and we are happy to set up a time to talk in more detail about your personal situation. We also greatly appreciate any referrals you can send our way and promise to take great care of them.

by: Lee Cross