August 2022 National Update #3
The Market is Shifting
The world is changing quickly, and we can see how much it is affecting the market. But why are we seeing such a large shift in the market? Let’s see what experts have to say about the recent shift:
Mark Fleming, Chief Economist at First American says, “There has been a pickup in the inventory that we’ve seen recently, but it’s not from a big increase in new listings…but rather from a slowdown in the pace of sales. And remember that a months’ supply measures the inventory of sale relative to the pace of sales. Same inventory, fewer sales, means more months’ supply.”
Sales Have Slowed in the Last 3 Months
So the same number of homes are going up for sale, but it is taking longer to get them sold. In January of this year, the national inventory was only 1.6 months, and latest data has us up to 2.6 months of inventory. While this isn’t a huge difference, it is enough to make an impact on the market. If we look at the inventory from last year, we see that there are more homes going on the market now than there was last year.
Buyers have more and more options now and it has resulted in more competition amongst sellers to try and get their homes sold. Seller’s are reducing prices and being more realistic in order to compete with the increase of inventory, which means buyers have more power and options than they have had in quite a few years.
So with more listings and options available for buyers, now is the time to reach out to my team about getting into your dream home. I’m Eric Eby with the Naturally NWA Home Team, the Natural Choice for your real estate needs!