I want to address the March housing statistics that were released last week. I received a message from a friend asking what was happening in the market as all of the numbers were down.
“Is the real estate market going to get worst? and will it ever pick up again?” I soon realized that this was a common concern among my clients.
So I ’m going to give you my quick take on the 2 main numbers that were released last week.
Sales Transactions for March 2018
The first number I’m going to talk about is sales transactions. Home sales are down 39.5% which means there almost 40% fewer people buying and selling in March compared to the same time last year.
You can expect to see the sales numbers continue to be down for the most part of the year as it will take time for transactions to pick back up.
Average Sales Price for March 2018
The second number that I’ll discuss is the average sale price, which is down 14% from $915,126 to $784,558.
Now I find this number to be a little misleading because it is being compared to last year when there was a huge spike in sales.
Detached Home Sales Had Biggest Impact
Detached homes sales, which generally represents the highest price points in a given area, declined much more than other home types.
Additionally, the share of high-end detached homes selling over $2 million in March 2018 was half of what was reported in March 2017, which would have a big impact on the average selling price.
Condo Sales Continue to Increase
Condos are continuing to see an increase month-over-month and are up 10% this month. And this upward trend is really linked to the affordability of condos.
Multiple offers still do happen
Because of the lack of inventory, we are still seeing desirable homes get multiple offers situations and bidding wars, so it is not all doom and gloom.
So if you are thinking about buying or selling now would be an optimal time because it is expected that the latter part of the year things will pick and you will be faced with more competition.
If you have any comments, please leave them below. And until next time, happy buying and selling.