Housing Inventory Supply Declined Slightly in September

Local housing inventory supply declined slightly in September, down from 5.39 months in August. Let’s breakdown which price ranges went down and why.

Housing Inventory Supply Declined

Everything $600,000 and up declined in inventory supply this past month. Sales went down in each of the three price ranges, but listing inventory declined even more. This tells us that more sellers simply took their homes off the market rather than sell in today’s market.

The $500k-$600k market increased in supply ever so slightly. Closed sales remained the same while listing inventory went up by four homes.

Best Performing Price Range

The $400-$500k market declined in supply. In this case, listings went down, and sales went up. This is the only price range on the chart that can make that claim.

The $300-$400k range saw listings jump by 105. The good news is sales jumped 66 to help offset some of the increase.

Worst Performing Price Range

The less than $300k range saw an increase in listings and a decrease in closed sales.

Based on these statistics, we can say the best performing price range this past month was in the $400-$500k range. The worst performing range for the month was the less than $300k range. If you are a seller in either of these two ranges, you might be feeling gratitude or pain.

In general, lower priced homes are more sensitive to external market conditions. In July, 36.6% of homes sold locally were paid for in cash. This means that 73.4% were financed.

The Fed

The Fed has purposely raised interest rates to cool the economy. They explicitly said they had to cool the job market to tame inflation. Statistics have shown they were able to cool the job market. The hope is the Fed will begin lowering rates starting this month and into the Fall. We could be dealing with a slumbering labor market into next year as lower rates will take time to work their way through the economy.

Shadow Inventory

Remember all those sellers that took their property off the market? How many of those will come back on the market in 2025? We just do not know. We suspect if the real estate market were to ever heat up in the next few years the shadow inventory would present itself and tame price appreciation.

Interest ratesWe are not expected to drop fast. If the Fed does drop rates fast, it means our economy is in worse shape than predicted, and this would not help the real estate market.

Thinking of Selling?

If you’re thinking of selling, Always Call the Ellis Team at Keller Williams Realty 239-310-6500. Sande and Brett are here to answer your questions. Or visit www.SWFLhomevalues.com to get an instant value on your home and track it over time. The sooner you start, the more data you will have.

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Housing Inventory Supply Declined Slightly in September