Too Many Buyers, Too Few Properties
A lack of inventory has been the pattern for several years now. With diminishing inventory, we also see a decline in the number of new sales, which makes sense: what is a buyer to buy?
While the lack of inventory is no surprise, the percentage of homes that sold within the year is shocking. Over the last five years, the percentage of pending sales to new listings of single family homes has averaged 86.6%. In 2017, 89% of new listings sold during the year. This is equivalent to selling out of properties every year for the last five years. Condos were only slightly behind single family homes.
Unfortunately, January of 2018 doesn't seem to have provided much relief. New listings in January this year are down from the previous five Januaries.