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Wednesday 18 May 2016

The Start of a Real Estate Market Shift


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There is a recent market trend this May that we will need to keep an eye on over the next 90 days. During the first weekend of May, buyers started making offers on properties below the asking price or with contingencies. That’s the first time this has happened in 2016.

The fact that buyers are making such offers could indicate a shift from the hot seller’s market of early spring into a normalized market. The number of new listings supports that, as new and active listings spiked in April and sales began to level off. This April, 184 new listings came on the market. That is the highest number of new listings on the market we’ve seen in any given month over the last two years.

That can only mean one thing - now, buyers have more selection, and we’re seeing a balance between supply and demand. More active listings mean buyers have more time to make a decision. If this trend continues, we can expect a softening or leveling off in home values.


The market may be starting to shift.


As you all know, we have been in a seller’s market for the last 12 months. In March, 95% of active listings were sold, and in April, that number plummeted down to 68%. We are still in a seller’s market, but if this trend continues, we will see a larger shift in the market.

Finally, the benchmark price has been going up. Just 12 months ago, the benchmark price was $600,000. Now, that price hovers around $800,000. The bulk of that growth occurred over the last four months. Keep an eye on that number, because if the benchmark price starts to level off, that’s a definite indicator that the market is cooling.

We’re not sure yet, but this trend could be an indicator that we are leaving the wild seller’s market the North Delta has been in over the past year. If you have any questions, give us a call or send us an email. We look forward to hearing from you!

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