The market is shifting, and being involved day to day, I am seeing properties on the market longer, price reductions, less or no bidding wars, and more demands in inspection objections.
We have been collecting active property and pending property numbers since May of this year to measure the effect of interest rate hikes and the Summit County moratorium. We are seeing inventory collect faster than properties are selling. Even though July was a better month than June in terms of under contract numbers, the inventory is building quicker than the sales. Expect higher days on market to continue.
As of August 1, there are 458 active properties in Summit County, and of those, 195 have been price reduced. 42% of our active listings have been price reduced! Up until mid May when interest rates were increased and when Summit County instituted its Short Term Rental License moratorium, we saw virtually zero price reductions. It’s still too early to track any price softening trends because we haven’t yet seen the necessary density of closings resulting from these changes, to assess changing prices. Right now, the statistics seem to show that prices are softening a bit, but not dramatically – maybe 2-5%.
Land Title data shows monetary volume in June 2022 was down 37% from June 2021. Transactions were down 44% from June 2021. YTD 2022, $ volume is pacing 12% down from YTD 2021, and transactions are 35% down from YTD 2021. The overall numbers show and prove that pandemic real estate patterns pushed 2020 and 2021 numbers to levels that are now returning to normal. Page 6 of the analysis shows this information the best.