April Market Update

APRIL MARKET UPDATE: MEDIAN PRICE JUMPS, NEW LISTINGS BRING EXCITEMENT

It is hard to believe that with snow on the ground just a few days back, that we are now in April! If you were waiting for signs that spring is here, look no further than our increasing median sales price (up 30K from last month) and our increasing listing activity. For the first month this year, the number of new listings to market outpaced the number of homes that went into contract in the month of March. We believe that some sellers were waiting for the weather to improve before putting their homes up for sale, and after waiting for the perfect opportunity, sellers just decided to take advantage of favorable market conditions rather than favorable weather.

Thoughts for Sellers

We still believe that now is the better time to list compared to waiting until late spring or early summer. Inventories remain very tight now, and there are a lot of buyers out there looking for the perfect home. We expect that as we get closer to the summer, new listing activity may continue to outpace homes going into escrow, which could lead to longer days on market, etc. This is the pattern we've typically seen over the course of the last few years. Even though the market has shifted, it still seems to be following a similar trend.

Thoughts for Buyers

Finally, more inventory is coming which could provide opportunity for buyers to find the right home. Even with the additional inventory hitting the market, we expect the best homes to go quickly and for multiple offers.

If you are financing a purchase, it may be a good time to take advantage of the fact that rates are once again below 6.5%. We are also only sitting at 1.5 months of supply which means we are moving through inventory twice as fast as pre COVID levels. Even with additional inventory we do expect to see upward pressure on price as we head into the summer unless rates go above 7%.

Cash investors still have the upper hand and should be looking for opportunities to enter the market. With prices down roughly 10% and starting to creep up, it feels like this could be a market bottom and a great time to invest.