In our analysis of the real estate market trends in May, we identified several prominent themes:
Price
The prices of detached homes have experienced a slight decline of approximately 2%, while condos and townhomes have seen a decrease of around 2.8%.
Despite the prevailing high mortgage rates, many anticipated more substantial price drops; however, the year-to-date decrease has been modest.
Days on Market
See the Charts Above
Homes are taking longer to sell compared to the previous year, with an average increase of 12-15 days. While exceptionally desirable properties can still be sold quickly, others tend to linger on the market.
Setting an appropriate price is crucial in this market environment.
Decreased Listings
Typically, when homes take longer to sell, the number of active listings on the market increases. However, this is not the case currently. In May, there was only a slight rise in active listings.
Many potential sellers, benefiting from low mortgage rates on their homes, have chosen not to list their properties. Consequently, new listings in May were 24% lower compared to the same period last year.
Sales
The number of sold homes is down about 25%. See the Charts Above
Key Messages to Sellers
Due to the limited number of new listings and reduced inventory available for buyers, prices have remained relatively strong.
If you decide to list your property, it is crucial to set the price correctly to attract potential buyers.
Key Messages to buyers
Properties that have been on the market for a while offer negotiation opportunities, as they may have more room for price adjustments.
However, be prepared to face competition when it comes to newly listed desirable homes. Most properties are still being sold at or near the listed price.
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