AUGUST 2021 FATE MARKET UPDATE
This is your monthly homeowner report for Fate as we’re ending the month of August. It’s always nice to know where your investment stands, so let’s get started.
Prices.
It is still a seller’s market. We still have a little over a week left in August at the making of this video but so far the month we’re averaging about $345,000 for sales prices which is a slight decline from July’s average of $354,802. Now don’t get too tied up in that actual number because there’s a swing in the types of homes available to buy in Fate. What I look at more is the percent increase from the previous year. Based on the current trend for August, prices are up about 23% from one year ago when the average sales price in August was just $280,491. Not bad Fate, not bad.
Sales.
We’ve had 34 sales so far in the month of August and they sold with an average of just 15 days on the market. They’re selling at an average 5.65% over asking. That pretty impressive to think about. My data goes back 10 years and in that period and the first time for the average sales price to be higher than the list price didn’t happen until January of this year. Before this year, the highest percent of sales price to list price was at 99.7% and that was a while ago, back in March of 2015!
One of the biggest things we know when studying prices like I do every single day is that it’s very hard when a seller’s market is driving prices up to know how much your home is actually worth. So I want to give an exclusive offer only for those who have watched this video. You can click on the link with this video or go to LivingInFate.com. There I have a few questions to ask you about your home to help make sure I’m giving you an accurate analysis. Unlike the automated home value generators that rely on algorithms and don’t have access to actual sales data, I will research actual sales prices and look at the specifics on how your house compares to recent sales. From there I will get on a call, a zoom, or even meet in person to walk you through exactly what you could sell your home for in this market right now and cash out.
Predictions.
First let’s look at the months of supply. This tells us how long it would take the current inventory to be purchased if no new listings came on the market. A balanced market is considered 6 months of inventory. For Fate we’ve been on the rise since May. We went from a jaw dropping .5 months of inventory (about 2 weeks) to now sitting at .8 months of inventory, or a little more than 3 weeks. We’re headed in the right direction for buyers. This tells us, though, that it is still an incredibly strong sellers market. I expect this trend to continue to creep up, but still at a slow pace.
The average days on market is slowly creeping up which tell me buyer demand is slowing. Just a second ago I told you the average days on market for homes that have sold so far in the month of August was at 15 days. For current listings that are pending sale but have not closed yet is at 21 days. For the homes that most recently went under contract, that average has gone up to 29 days. For the most recent homes to go under contract, it’s taking longer for those homes to get an offer.
There are some other factors to consider on a larger scale that affect us on a local level too. The fact that interest rates are still below 3% is huge but it’s interesting to note that loan applications are down. As of the recording of this video the purchase index down 2% from the week prior and down 19% from one year ago.
So to recap, the months of supply are slightly up. The average days on market is increasing. The percent of the sales price over the asking price is holding strong. Interest rates are under 3% and but we have fewer buyers in the market. Historic seasonality trends also tell us this is the time the market starts to slow down from the spring/summer season so this isn’t a big surprise.
Based on this information I predict we will continue to see strong opportunities for sellers in this market but we will start to see a decline in the amount people are willing to offer over asking. Frankly, buyers are getting tired of being in this environment of constant disappointment and extreme competition. The fact we’re seeing a slight increase in the months of inventory and the time on market is driving that prediction for me.
So, what do you think? Do you want to take advantage of this market and cash out while it’s good? Visit LivingInFate.com to learn exactly what you could sell your home for in this market right now and walk away with at closing.