Oh what I would give for a crystal ball this spring - for both the weather and the real estate market!
We are currently just a hair behind total number of sales compared to last year but we are way ahead in terms of price. The average sale price is up almost $2,000 from last month and up a whopping $73,000 from this time last year! We are also seeing an increase in the list to sell ratio with homes now selling at an average of 98.28% of list price compared to 96.24% last year. Average days on market has taken a dive to 45 days from 57 days this time last year. As well, active inventory is only 77% of what it was this time last year!
March 2017 vs March 2016
Prices are up 12%
I believe the next three months will be very interesting to watch. Will this market maintain its sales momentum in the face of rising prices and a dwindling inventory? At what point will prices hit the ceiling? It all hinges on inventory. If we don't start seeing more listings soon (specifically single family detached) prices are going to keep going up while sales volume will likely match that of 2015. If we do start to get more listings than I suspect our sales volume will match that of 2016 and prices will remain steady. Of course this is just my best educated guess. If anyone tells you that they know for certain what will happen just walk away because they are lying to you.