We usually see the market pick up every year in September, but that didn’t happen this year. Here’s what has happened instead.
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Before I dive into the numbers today, let me take you back to when we started to see the market shift slightly in June and July. July and August are typically quieter months, and the introduction of a foreign investment tax certainly cooled down the market a little bit. We wanted to wait until after Labor Day to see what that brings. Usually, we see the market pick up every year at this point in time.
First, let’s look at the active listings, new listings, and sales. September has remained a fairly cool month and is a continuation of what we’ve seen this summer.
First, let’s look at the active listing, new listing, and sales graph. Going back to June, we have seen inventory steadily climbing and sales steadily declining. That trend has continued through September. Active listings have risen from 204 to 218 and sales have been steadily declining too. We saw 105 sales in June, 47 sales in July, 30 in August, and 28 in September. It seems like we are bottoming out in terms of sales.
As for our sales-to-active-listing ratio, we were at 95% back in March. We have been steadily declining since. This number was 24% in July, 15% in August, and dropped to 13% at the end of September. A healthy market has a ratio of 15% to 20%, so we are slightly below that. We rarely see ourselves in this type of position, so it will be interesting to see what happens.
Now let’s look at the benchmark price. Back in June, it was $905,000. It dropped slightly to $894,500 in August, and is now at $875,900. We are down 2.2% from last month and 3.3% from the peak of the market. However, the benchmark price is still up by 34.3% from last year.
What does this all mean for you? The hot market with abundant bidding wars is gone. We are returning to a more normalized market that is favoring buyers as opposed to sellers. We will keep watching to see what this trend looks like over the next few months. We usually don’t stay in this type of market for long, so we will keep you updated if anything changes.
If you have any questions, give us a call or send us an email. We look forward to hearing from you.
First, let’s look at the active listings, new listings, and sales. September has remained a fairly cool month and is a continuation of what we’ve seen this summer.
First, let’s look at the active listing, new listing, and sales graph. Going back to June, we have seen inventory steadily climbing and sales steadily declining. That trend has continued through September. Active listings have risen from 204 to 218 and sales have been steadily declining too. We saw 105 sales in June, 47 sales in July, 30 in August, and 28 in September. It seems like we are bottoming out in terms of sales.
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We are returning to a more normalized market.
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As for our sales-to-active-listing ratio, we were at 95% back in March. We have been steadily declining since. This number was 24% in July, 15% in August, and dropped to 13% at the end of September. A healthy market has a ratio of 15% to 20%, so we are slightly below that. We rarely see ourselves in this type of position, so it will be interesting to see what happens.
Now let’s look at the benchmark price. Back in June, it was $905,000. It dropped slightly to $894,500 in August, and is now at $875,900. We are down 2.2% from last month and 3.3% from the peak of the market. However, the benchmark price is still up by 34.3% from last year.
What does this all mean for you? The hot market with abundant bidding wars is gone. We are returning to a more normalized market that is favoring buyers as opposed to sellers. We will keep watching to see what this trend looks like over the next few months. We usually don’t stay in this type of market for long, so we will keep you updated if anything changes.
If you have any questions, give us a call or send us an email. We look forward to hearing from you.
