The real estate market has become very "hyperlocal". I frequently hear people making comments about how bad the market is, or how good the market is. The best characterization of the market is "it depends". It depends if you are a buyer or seller and what price range you are referring to.
So, you have to dig into the market to truly understand what is happening. When we break down the price ranges, we identify where buyers have leverage and where (believe it or not) sellers have leverage. This analysis is a reflection of available inventory and running sales rate in the price range.
We have active sales in the low end from $649,000 down. The supply time is averaging 3.4 months. This would indicate that sellers have leverage and that demand is high. A standout price range with 54 months of supply is $700,000-$749,000. Sellers are at a standstill and buyers are resistant to the inventory. Feedback from the field is that this price point looks a bit “picked over” with many homes having condition issues. $750,000-$899,900 is active and healthy with 6 months of inventory.
The price ranges slightly under $1 million are also being penalized with buyer resistance. Some of these listings have been reduced and have languished on the market. Price ranges from $1 million-$1,899,000 are experiencing supply time of 11 months, which the exception of $1,400,000-1,499,000. This price range is being hit hard with 72 months of inventory. $1,500,000-$1,899,000 is somewhat active at 9.5 months of inventory.
Above $1,900,000 is experiencing an average of 29 months. The overall theme with buyers is that they are demanding value and are looking for homes in good condition and location. They appear to be summarily rejecting homes that are even slightly overpriced, and in need of work.
The most important factor is knowing how the price range (you are either seller in or buying in) is performing and that that market will always be "hyperlocal".