Another month down, and another month of appreciation. Last month, we saw 3.48% appreciation, and our median closed price is now $595,000. One of my favorite metrics is months of inventory because it compares the current rate of supply and demand. Months of inventory is at 1.67 which means that if no other houses came on the market, we would be out of active listings in 1.67 months with the current rate of closed homes. A ‘balanced’ market is supposed to be 4 to 6 months. I expect to see appreciation for the next few months until our months of inventory increases over 2.5 or 3.
Interesting data came out on flips stating that national home-flipping profits hit a 17-year low in 2023. I am always skeptical about flips as the cost to acquire houses is so high and flippers need to make money. I have been even more skeptical recently. If there are multiple signs of poor craftsmanship with a flip, I am going to very quickly recommend that you not buy the house.
TLDR: Buyers, inventory is tight for well-maintained houses that are priced right. Expect to compete in these scenarios but know that it will be worth it in the long run. Sellers, if you were looking to sell last year and couldn’t get the price that you wanted, it is worth revisiting the discussion. We have had multiple houses sell this year for a price that wasn’t possible last year.
