The stats are in for July 2017 and they show a slow down in the detached market and continued strength in the attached market. Once again, the specific stat to look at closely is the Sales to Active Listings Ratio (SALR). This number tells us the number of homes sold in a month as a percentage of the total number of homes listed for sale in that month. As a percentage, anything over 20% indicates a “sellers” market with prices increasing. Anything below 14% indicates a “buyers” market. Of course, stats usually cause people to have blurred vision or to fall asleep but they are very useful in spotting trends in the market. I really like stats because they help me to make sense of what I’m already seeing out there. What’s also useful is looking at trend lines. Over time, the number of listings on the market goes up or down. This all important stat shows how many homes active buyers have to choose from. Another great trend line is the number of sales in each month. If sales are trending down, and inventory is trending up, the outcome is inevitable, the SALR goes down. When that happens, markets shift. What’s funny is that these shifts happen with predictable regularity over the course of any given year. Inventory is always at its lowest point in December. Sales and listing inventories start to climb in February/March. When sales numbers start to decline, there’s good chance that inventory will rise faster. This usually happens in May/June. These typical market cycles happen year in and year out. This year, in 2017 we are seeing the exact same thing happening. The current detached market is trending towards oversupply while the attached market remains quite strong. To get a better idea of where the market is headed for your home, give me a call.
Here are some interesting numbers:
This chart shows that the Sales to Active Listing Ratio is falling from its peak in April of this year. A higher SALR percentage indicates that a larger percentage of active listings are selling. This higher percentage drives prices higher. Conversely, a lower percentage will a some point cause prices to decline.