Last month I promised a full market report, and here it is. Overall spoiler is that buyer activity is slower and inventory is increasing. Buyers have more choices than ever before. Sellers need to be competitive to be the next property to sell.
Sales
Last month in June, we had only 77 residential sales in Summit County. That’s low for June. To put this in perspective, previous closings in June were:
2023: 84
2022: 126
2021: 206
2020: 116
2019: 118
Pending Sales
In June 115 properties went pending. Compared to previous June pendings, this is low, but equivalent to last year and more than in 2022. This for me is a silver lining because there are still a fair amount of properties going under contract. These will close in July, August and even into September. If history repeats itself, July and August will have more pending transactions.
2023: 119
2022: 81
2021: 189
2020: 252
2019: 165
New Listings
The biggest change we have is the number of new listings hitting the market and the larger than normal amount of inventory we have. In June alone we had 300 new listings. In the first 2 days of July there are 52 new listings! It has been 4 years since we have seen this level of new listings. On July 2, we have 680 active listings in Summit without deed restricted listings. Only 257 of those are under $1m.
Assuming we can hit 150 sales a month, that’s 4.5 months of inventory.
Stats show 6.7 months of inventory:
Showing Activity
The number of showings per listing in June is 2.7. Here is where the difference lies on buyer activity. Back in 2020, showings were as high as 8 per month per listing. That is the sign of buyer demand.
The average number of showings needed to go under contract is 9.
With 2.7 showings per month, Sellers can expect a hold time of more than 3 months.
List to Close Percentage
In June, properties were closing at an average of 97.6% of list price.
Sales Price
Median:
Average:
Median and Average sales prices are still holding steady. With more inventory and higher months of inventory, the summer market will determine whether the inventory will be absorbed and purchased or whether there will be more properties than demand. There could be downward pricing pressure if enough sellers have to sell and decide to reduce their prices.
What does this mean to you?
Anecdotally, we currently have 13 listings. In the past, I would have had much more activity on them than we are experiencing now. We are just hitting the high selling season, so things could pick up. However, activity in April – June has been quite slow.
Sellers: You have been in the driver’s seat for many years. The market appears to be shifting with more inventory and less Buyer demand. In looking at all the active listings, I would estimate that 25-30% of listings have had price reductions. While pricing is holding steady, you will have to be cognizant of the changing market conditions and decide if you have to adjust to hit market pricing.
Buyers: This is the first time in 4 years that you have had the option to choose from so much inventory. In addition, without the same levels of buyer demand, aka, competition, you have more time and more leverage than before. However, don’t expect all Sellers to negotiate. You are in a resort and second home market where people don’t necessarily have to sell. You may find a motivated seller, but it may not be your perfect property. Your perfect property may not be willing to negotiate.