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The latest numbers are in for December 2018 and we’re excited to talk about what has changed in the market during the last year.
This December, we had 6,147 homes come on the market. That’s down 1.9% from the number we saw in December 2017. During the same time period, our active inventory is up 2.6%. We had 19,735 homes on the market in December 2017, but we have 20,249 homes on the market as of December 2018.
The number of homes sold in our market is also down significantly. We had 6,503 sold homes in December 2018, down 9.7% from the 7,197 we saw last year. As for the months’ supply of inventory, that figure is up by 13.5%, from 2.74 to 3.11 months.
You’re going to notice a couple of things from these numbers. A steady increase in the months’ supply of inventory from May 2018 to December 2018. It remains to see how January will play out, but we’re starting to note that buyer demand is in a steady decline from about 165 to 132 on the Cromford Market Index.
What does all of this mean? Buyer demand is cooling as interest rates have gone up. At the same time, buyer affordability has gone down because prices have gone up. The hot market we had in the early part of 2018 has gone away and we’ve transitioned back to a normal, flat market.
When it comes to supply and demand, we’re still technically more favorable for sellers, but we are trending towards a balance. One thing I just saw is that mortgage rates have come down to the lowest they’ve been in eight months and we’re currently sitting at around a 4.5% average. I expect to see more buyers come into the market because of this because rates will go up again in 2019.
If you or anyone you know is looking to buy or sell a home in 2019, don’t hesitate to give me a call or send me an email today. I look forward to hearing from you soon.
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