The first quarter of the year typically doesn’t have anything special to report as it’s early in our traditional buying season. However, I value it because it can predict potential direction for the second quarter, possibly third. Much like the national market, despite low interest rates, our lack of inventory is becoming a problem. In the first spread sheet below you’ll notice that inventory is not refilling itself like it did the past two years. Additionally, for the most part average sale prices are slightly down in most sectors. However, in the second spread sheet below you’ll notice something spicy. Days on market have dropped considerably in the condo and residential market. Vacant land as well however it can better be described as a slow market moving up from slower.
What does this all mean? New inventory is going fast while the existing inventory is moving at a moderate rate. This is primarily a seller’s market with sellers currently being stubborn with their asking price. What is encouraging is interest rates are back down and we have yet to see the height of our market, which means value still exists however negotiating low ball offers aren’t likely going to fly. The prices are what they are. New construction is emerging and will likely only impact the market slightly and comparable sales will only strengthen their price points. Only time will tell how long this will last. Most economists predicted 2019 to be a slower moving year with a resurgence in 2020. However, it is still early in our selling season and crazier things have happened, so be prepared for surprises.
