Despite the first glimpses of fall (and maybe even a dash of winter soon?), the real estate market continues to perform strongly. This is ordinarily the time of year when things slow down - buyers are more reticent to move in the winter, families with children in school are apprehensive about moving them mid-year, etc... However, despite these seasonal pressures, things were solid the month of September.
Compared to September 2012, the overall median sales price is up 11.7% and currently stands at $195,000. The usual suspects are primarily responsible for the jump in sales prices - historically low interest rates, a reduction in the amount of homes for sale, and a steady stream of ready-to-go buyers.
We continue to see issues on the inventory front. Compared to a year ago, inventory is down roughly 7%. This creates multiple-offer situations and panicked buyers, which partially explains the steep rise in median sales price we've seen over the past year or so.
Continuing a trend we've been seeing for a while now, distressed sales (short sales and foreclosures) have fallen dramatically. Just a few years ago, roughly half (!) of all transactions involved a distressed property. Today, things are much closer to the traditional ratio of regular sales-to-distressed sales.
Winter 2013 and into the beginning of 2014 will be interesting to watch. As I stated earlier, this is ordinarily the slow time of the year for real estate. However, the market has been red-hot and wildly unpredictable. Check back next month for another update!
