The post Labor Day residential real estate market opened with a bang. In the past seven days 398 new homes were added to our inventory – 126 single family homes and 272 condos/TICs. Including these new additions, single family homes now represent about 1.5 months of available inventory and condos/TICs 2.5 months.
It appears closed sales are still lagging behind the first eight months of 2021 sales by almost 20%. Single family homes are 14% behind and condos/TICs are behind 24% compared to the same eight month period last year.
Average selling prices remain at historic highs for single family homes priced under $2.75 million. However the overall market is showing signs of average sales prices moderating downward. In particular, condos/TICs have declined 4-6% compared to the historic highs reached in 2019 for the three configurations we survey.
When you factor in another fed rate increase of as much as 100 basis points coming soon, interest rates could reach the 6% range going into the fourth quarter. As our old broker used to say “the market is the market” – you either learn how to work it to your client’s advantage or complain to anyone who will listen how bad it is.
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