Today I want to show you some interesting numbers that will give you a good indication of where our market is likely to go as we move forward through 2019.

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Recently, my clients have been asking me whether or not the market is likely to get better over the next few months. In light of that, today I want to show you some interesting numbers that will give you a good indication of where our market is headed. In particular, I want to discuss the difference between our monthly active listings and our monthly sold listings.

 

In the video above starting at 1:14, you can see a chart that lays out the number of new listings per month beginning in May 2018 and ending in May 2017, comparing that to the number of sales for those same months.


As you’ll notice on the chart, active listings outpaced the sold listings in almost every single month except for December 2018. That tells us that every time a listing doesn’t get sold, they either carry over into the inventory pool or the seller removed the listing from the market.

“By paying attention to these indicators, you’ll be able to predict an upcoming market slowdown.”

In the video above starting at 1:14, you can see a chart that shows the disparity between the number of new listings and the number of home sales for each month between May 2018 and May of 2019. Here, you’ll see quite a different picture: In many months, the buyer demand outpaced active listings on the market, leading to a higher number of sales than active listings.

 

Looking at these numbers, it’s not surprising why the spring 2018 market got so crazy. A bulk of the sales took place in 2017, so by the time spring 2018 came around, there simply wasn’t enough inventory left in the pool to satisfy buyer demand, leading to a reversal of these indicators.

 

By paying attention to these indicators, you’ll be able to predict an upcoming market slowdown. So be sure to keep an eye on these numbers so that you can make a decision about how to act as we continue deeper into 2019.

 

If you have any questions about buying or selling a home, don’t hesitate to reach out to me. I’d love to help you.