I am encouraged by a report recently released by the National Association of Realtors (NAR) stating that single-family homes, condos, townhomes, and co-ops available for sale dropped by 16.5 percent year-over-year.
This decline in inventory, which I have commented on several times, is certainly a positive confirmed by NAR economists. The year-over-year decline in homes for sale indicates that the market has worked through the backlog of inventory and, if these conditions continue, sellers are more likely to see offers at or above the asking price.
According to the NAR report, the national available inventory is down 5.6 percent from December to January, and as stated above down 16.5 percent year-over-year. The national median price rose almost 1 percent month-to-month, and is slightly higher than a year ago. The number of days a home is spending on market is also decreasing nationally, down 9.2 percent year-over-year.
These numbers are extremely encouraging for our local markets. Coupled with positive numbers from Wall Street, we are seeing a sellers’ driven market emerging in many communities.
Local statistics back up the NAR’s conclusions, and in many cases our local markets are exceeding the national averages. The Market Action Index from Altos Research measures the rate of current sales versus the amount of inventory available. Many local communities such as Bedford, Concord, Boston (metro), Acton, and Lexington are all well above the buyer’s market threshold, and are continuing a strong upward trend.
The pent-up buyer demand held over from the extended fall market continues to compound weekly. Accurately priced inventory is moving very quickly off the market; buyers are concerned with both missing the bottom and interest rate hikes, which I am sure are forthcoming.