Circle C Housing Market Update August 2018
Circle C Housing Market Update August 27, 2018
Summer is over, and school has started (yah!) so the historical residential buying months (MAY-JULY) has drawn to a close. January through July 2018, we’ve seen 222 home sold in Circle C… 36 of those were in July. That’s 10% more homes than same time last year. The highest sales per month of the year was May 2018, when we recorded 53 homes sold. I expect to continue seeing sales in the 25-35 homes per month range for the next month or so before we go into the fall and winter months. By the end of the year, I would expect to see a total of 350-370 Circle C homes sold and recorded in MLS. Remember not all sales are captured in the MLS – most off market homes are new construction and never reported through the MLS.
The average home sold in Circle C this year is almost 2,850 square feet, was built in 2003 and sold for $522k. Prices and sizes do range from a low of 2,017 SF and $414k to a max of 4,363 sf and $725k. As projected in January 2018, we’ve seen slower price growth than the past few years. Year to date, prices are up approximately 4% over last year at $183/sf.
Average days on market is lower than same time last year at 36 days (on average) whereas in 2017, we were averaging 40 active days on the market before contract. That number can be skewed by the number of resale homes versus new construction homes as new construction homes that are listed in MLS (spec homes) may be tracked from the start of construction and are not ready for move in for 6-8 months.
With less than 50 homes on the market for sale we have only ~ 1.4 months of inventory based on a sale rate of 36 homes per month. What does that mean exactly? Well, it’s a hypothetical # based on the belief that if no one listed another house this year, it would take about 1.5 months before all 50 homes were under contract. That is a blazingly hot seller’s-market according to the National Association of Realtors (NAR). NAR considers the market to be balanced if there were 7 months of inventory available for sale. To put that in perspective, we would need to have 7 x 36 or 255 homes active on the market in Circle C to meet NAR’s definition of a “balanced” market, not in favor of the seller or buyer.