We have been studying the latest Iron County real estate stats for June and they confirm something we have already been noticing - inventory of available homes for sale has started to climb.
If you look at the above graph, you'll see that last month saw the first upward spike in new listings since March. That's partly in line with seasonal expectations, but it also follows the trend that started in March for the number of active listings to rise.
If you look at the number of sold listings on the same graph, you'll see that the difference between them and the active and new listings is increasing, though we continue to see more sales in total month-on-month.
These patterns reflect the general view across the nation that the real estate market is starting to cool a little from the unsustainably frenetic market we were seeing just a few weeks ago.
But it's also important to put things in perspective. June saw a small improvement in the number of months of supply in our market (see absorption rate graph below), but it's still only about six weeks, so it remains very much a seller's market. There were also hundreds more homes on the market in June 2020 than in June this year (a drop of just over 44%).
We also observed that the average number of days a home is on the market (see graph below) continues to fall quite dramatically, again demonstrating the exceptional demand that's still around.
And if inventory does continue to rise, this may yet attract even more buyers, as they will enjoy having more choice and the reduced possibility of rejected offers.
We are arguably seeing a return to a more normal and balanced market that is also actually good news for sellers too, especially if they are looking to buy another property themselves.
It's important to emphasize that these changes were bound to happen at some point and don't represent anything close to a market collapse.
The pandemic was a time of extremes and we now appear to be progressively moving to living more normal lifestyles again. That will be reflected in real estate, where the fear of living in major cities caused so many people to move here. That fear is not nearly as strong as it was even a couple of months ago.
As the return to normalcy gathers pace, we can expect to see a continuation of the popularity of this area to newcomers. This is reflected in over 30 new subdivisions that will be coming online in the next year or so.
As always, we'd be delighted to talk with you if you have any questions or concerns regarding the current market conditions and/or your situation , so don't hesitate to get in touch with us to discuss your best options - 435-327-2090.