Buyer Competition Drives Historic Prices
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This year’s year-to-date sales decline of 18%
is directly associated with a 19% drop in new
listings. Buyers remain on the lookout for movein-
ready listings, particularly the more affordable
ones. In May, there were 364 new single-family
homes listed, a decrease from 475 listed in the
same month last year.
Prices got off to a slow start this year but have
hit historic highs in recent months. Average
sale prices were down 9% and 2% in January
and February. By April and May, they were up
9% and 12% compared to the same months
last year. Looking at patterns from prior years
and recent growth rates, we expect additional
growth in June before seeing numbers plateau
or fade a little in July.
The “under, at, and over list price” chart suggests
that the market has another month or two of
growth before it begins to fade. In May, 56%
of sales closed above the full asking price,
while another 18% matched it. Although the
over-asking sales in May dipped compared to
the intense mid-pandemic figures in 2022 and
2021, they were up 20% over the pre-pandemic
percentages. Continued strong demand will keep
prices up and stable despite fewer sales.
