There is concern from some people that our real estate market is overheating. Some interesting statistical data will crystallize our current market and take away some misconceptions as well.
We had our second most active year ever in terms of the number of sales and our average price reached an all-time high of $244,000. Now before anyone screams that we are topping out, this represents an increase of 4.6%, very close to the national average. The national average is comprised of all areas of the country from the smallest to the largest and from the least active to the most active. So we aren’t characterized as an overheated market, but we’re a good active market. We are still under the price appreciation trend line dating back to 1991.
One thing that is pushing our market is a relatively short supply of inventory. When people are happy where they are, the number of listings drops. And who would not be happy living here?
But this affects other statistics. “Months of Inventory” is a key indicator of supply and demand. Six months of inventory (number of listed properties for sale) is a balanced market. Less is a sellers’ market. More is a buyers’ market.
With spring coming soon, more properties will come on the market. Even happy people move around within their market. There are many valid reasons to move but not leave.
So, let’s enjoy where we live, work and play. We’re not rated the Number 1 City in the World without good reason.
And call me for all your real estate needs. I am here to serve!