Late Summer Heat Keeps Real Estate Market Warm
Inflation, higher interest rates, and fears of a possible recession were expected to sideline buyers and sellers this summer but it didn’t quite happen in the Greater Capital Region. As in recent months, last month buyers continued to pay above list price for homes pushing the median sales price in the region to $300,000 for the first time on record. Days on the market also continued to drop to a new low of only 19 days from list to sold.
The number of homes for sale was down compared to this time last year. Inventory levels market-wide decreased 37 percent to 2,146 units. Greater Capital Association of REALTORS President, Kendal Baker, Broker-Owner of Markers Octagon Realty, commented, “ Sellers who feel they have missed the peak may have underestimated the demand for homes in the Capital Region despite the cost of rising interest rates. Many local and national economists like NAR Chief Economist Lawrence Yun, believe the worst of inflation may have passed”.
Although sales prices remain up from last year, price growth is expected to moderate in the months ahead as the weather turns cooler causing the market to shift in a more buyer-friendly direction. More than 1,200 homes closed last month – healthy but a 10+ percent drop over the year-to-year comparison. Months Supply of Homes for Sale held steady at 2 months with only 94 New Construction listings and 68 reported Sold. Laura Burns, GCAR CEO, said “With new construction averaging $523,000, many buyers are not able to access the new home market causing price pressure on existing homes and yielding the high selling points we’re currently seeing”.
In August, newly listed homes declined by 21.1% compared to the same time last year, a greater rate of decline compared to the previous month’s 16.8% year-over-year decrease.
According to Realtor.com, moderating buyer demand may hit the Capital Region this Fall spurred by rising interest rates and listing prices close to all-time highs.