September ends a very slow third quarter for closed residential sales. There were 1,815 single family homes that closed and 2,466 condos/TICs. Compared to the third quarter of 2021 single family home closed sales declined 15%, condos/TICs declined 25% and total combined residential sales declined 21%.
Inventory continues to build following the Labor Day holiday
weekend as it does most years. Single
family homes have an inventory of about two months supply and condos/TICs show
an almost three month supply. Of the 432
currently active single family homes 138 of them, almost 32%, are priced at or
above $2.5 million.
Average selling prices continue to moderate downward. While single family homes remain at historic
highs they have been declining in recent months. Days on market are increasing and overbidding
is declining. All of which means lower
average selling prices. And, as we
approach the 7% mortgage interest rate level, this will probably dampen sales
even further.
Active buyers are finding plenty of available
inventory. Competition has dwindled and,
in many cases, disappeared. Negotiating
is back on the table. DOM continue to
increase. While some overbidding
continues in a few “pockets of popularity”, offer dates have largely
disappeared and the few we’ve seen have not succeeded in generating accepted
offers.
