Eight weeks ago there were only 6 neighborhoods on this map that would be considered balanced (4-6 months inventory) and the remainder were decidedly buyers’ markets with more than 7 months of inventory of residential real estate for sale. Today, 14 neighborhoods are balanced, and the buyers’ markets have dropped significantly in months’ supply from typically low double digits to bordering on balanced.
Real estate agents are often the leading indicators of a shift. We are feeling this shift in a number of ways. There is significantly more buyer activity. There is much more anecdotal evidence of multiple offer situations. Setting up buyer tours is harder because you bump into more properties you would like to see that are no longer available, and it takes longer for agents to confirm schedules because they are busier.
Price appreciation will take more time. We will need neighborhoods to shift into sellers’ markets (green) to really see values shift. Many neighborhoods are still feeling the impact of distressed properties.
The advice to those selling their homes is still the same for now — make your price compelling.