Economic Volatility Injects Uncertainty into Spring Market
Pockets of activity continue in all price points, but demand is often uneven and unpredictable - and very property specific. Some homes initially generate significant interest but then linger on the market; others continue to sell very quickly with multiple offers for well over asking price. Agents report that some buyers and sellers are hesitant to move forward with plans, spooked by economic uncertainties both personal and macroeconomic. The supply of homes for sale is up dramatically year over year, the absorption rate is substantially down, and price reductions continue to climb to levels rarely seen during the spring selling season but many agents report strong showing activity and active open houses. House markets are substantially stronger than condo markets.
The homes seeing highest demand, and most likely to sell quickly with multiple offers, are houses in absolute move-in condition, often professionally staged, aggressively priced, in prime locations, and outside high fire-risk zones (and the associated issues regarding homeowner's insurance).
These mixed market conditions may simply be a temporary hiccup due to short-term economic uncertainty, or a sign of transition to a market more balanced between buyers and sellers. Agents speak of considerable opportunities for attentive buyers.
As of early May, interest rates continue to hover near 7%, but stock markets have substantially recovered from early-April plunges. Consumer confidence readings saw precipitous declines last month. Specific regional market data follows in this report, but note that April sales statistics reflect many transactions that went into contract before the severe financial market volatility which began early in the month. May sales data will better reflect April market conditions.
Report created in good faith using data from sources deemed reliable but may contain errors and subject to revision. Last period figures are preliminary estimates based on data available early in the following month. All numbers approximate, and may change with late-reported activity.
