Deciphering the August Real Estate Numbers: Key Insights
Understanding the recent shifts in the real estate market.
The August real estate numbers have arrived, and they reveal some intriguing trends in the market. Today, we'll break down the key highlights and offer insights into what these numbers mean for potential buyers and sellers.
1. Increasing inventory. One notable trend is the second consecutive month of increased inventory. As we predicted, the end of the high season has brought about a rise in housing inventory. August saw nearly 4,700 available units, up from 4,200 just two months ago. This uptick in inventory has given buyers more options to choose from.
2. Declining demand. Demand has slowed due to the end of the high season and interest rates hovering in the mid to high sevens. This has resulted in a slight decrease in buyer demand. Evidence of this decline can be seen in the reduction of new escrows for the fourth consecutive month.
"While some numbers may appear concerning, it's essential to look beyond the surface."
3. Steady closed units. Closed units have remained relatively steady, with approximately 2,500 closed sales for two consecutive months. However, as new escrows continue to decrease, we may see a shift in this trend in the coming months.
4. Home prices. A significant topic of discussion is the 1% decrease in home prices, dropping from $455,000 to $450,000. This marks the first decline since January 2023. It's important to note that while the total prices have decreased, the price per square foot of properties sold has actually increased slightly. This suggests that buyers are opting for smaller homes.
While some numbers may appear concerning, it's essential to look beyond the surface. The real estate market is dynamic, and various factors influence its performance. If you're considering a real estate decision in the fourth quarter or looking ahead to 2024, call or email us. We have the insights and information to help you make informed choices and navigate this evolving market successfully. Don't let raw numbers confuse you; let us guide you toward making the right decision for your real estate goals.