The latest numbers are in for December 2018 and we’re excited to talk about the year-over-year changes we observed in our market at the end of last year.
Last December, we had 6,147 homes come on the market. That’s down 1.9% from the number we saw in December 2017. During the same time period, our active inventory rose 2.6%. We had 19,735 homes on the market in December 2017, but we had 20,249 homes on the market as of December 2018.
The number of homes sold in our market also dropped significantly. We had 6,503 sold homes in December 2018, down 9.7% from the 7,197 we saw in 2017. As for the months’ supply of inventory, that figure went up by 13.5% from 2.74 to 3.11 months.
It remains to be seen how January will play out, but we’re starting to note that buyer demand is in a steady decline from about 165 to 132 on the Cromford Market Index.
What does all of this mean? Buyer demand is cooling as interest rates have gone up. At the same time, buyer affordability has gone down because prices have gone up. The hot market we had in the early part of 2018 has gone away and we’ve transitioned back to a normal, flat market.
When it comes to supply and demand, we’re still technically more favorable for sellers, but we are trending towards a balance. One thing I just saw is that mortgage rates have come down to the lowest they’ve been in eight months and we’re currently sitting at around a 4.5% average. I expect to see more buyers come into the market because of this, as rates will go up again in 2019.
If you or anyone you know is looking to buy or sell a home in 2019, don’t hesitate to give me a call or send me an email today. I look forward to hearing from you soon.