Compression Cycle Deepens, a Highlight on the 1.0-1.5M Market
Our compression cycle is deepening as we continue into 2023. This last weekend we were competing with football playoffs with slower showings, however the buyers that were out there were serious dropping from looking at 16 homes before making an offer to only 14. Buyers are beginning to feel the crunch as inventory shrunk another -2.1% this week to 4,281 units for sale while pending transactions increased by 6.2% with 863 units transitioning to the pending status. This deepened our seller's market to 1.1 months worth of inventory. Supply in months is likely to continue to decline warranting multiple offers into the early spring months.
I wanted to highlight the $1,000,000-1,500,000 segment this week. There is a really interesting pool of potential buyers who are very active right now. The problem is with only 313 units available for sale, and declining, they have already seen everything on the market. They are just waiting for the perfect home for sale to pop on the market as median days on market last week was only 14 days. This market has a 1.4 month supply of inventory, at 47.0% odds of selling and only 15.4% of the inventory required to offset demand. This market has popped earlier than other price points and earlier than we have experienced historically. You may want to consider listing your million dollar home sooner rather than later in March/April when inventory starts to climb as the buyers are out there.