One Market, Split Into Two…
Of the 40 homes that closed in May, 31 sold for less than $1.5 million. As of May 1st, there were 86 active listings in Washington Park; however, 47 of those were priced under $1,5 million. So, if we are selling 31 a month and we have 47 in inventory, that is a 1.6 month supply of inventory. In May of 2023 we had a 1.3 month supply of inventory in that range. So, the market is slightly worse for sellers in that range, but it is still well below the 6 month threshold that is thought to be the point where the market shifts to the buyer’s advantage.
In the $1.5 million plus range, it is a different story. With 39 in inventory and 11 sold in a month, the inventory in May of this year is double the lower range with a 3.55 month supply. So, the market under $1.5 million is twice as good as homes over that mark and it is creeping toward the 6 month supply that shifts to a Buyer’s market.
In May of 2023 we had a 1.3 month supply of homes priced under $1.5 million. The jump to a 1.6 month supply is an increase but not as much as the higher range. Last year there was a 1.67 month supply of homes for sale in the $1.5 million-plus range. This year it has jumped dramatically to the 3.55 month supply that we have now. Thus, my point, it is like two different markets. We can’t blame interest rates because they are about the same as they were a year ago. The problem is the inventory.
You might wonder why we analyze the market every month. It is simple. It is so we can give you the best possible advice on buying or selling your home. If you are considering a move, give us a call.
Your call to The Bridge Team at 303-331-4562 will be warmly received.
