The real estate market did not show any signs of slowing down in the third quarter. It’s still a very active market with homes moving very quickly after listing. Inventory rates have leveled off, which is a great sign for buyers, though it remains a sellers’ market out there. Heading into the fourth quarter, we’ve been encouraged by the increase in new listings on the market. Let’s take a closer look at some of the most important metrics when it comes to the market in Greene, Christian and Webster counties.
During the third quarter, inventory plateaued at around two and half months supply. This metric tells us how many months we’d have inventory if no new homes came on the market. The two and half months of supply is an uptick from earlier this year, but still remains significantly lower than last year at the same time. In a low inventory market, sellers experience quicker sales for more money on average. Buyers have limited options due to fewer homes being on the market, so acting quickly is in their best interests. It is an encouraging sign to see inventory maintaining its rate during the past three months as we head into the winter, which is normally a lower activity period in the real estate market.
The median sale price of homes in Greene, Christian and Webster county have steadily increased all year long. They’ve grown 16.8% since January. New listings on the market have also increased by about 22% since the beginning of the year. These are great signs for homeowners because they show a good probability for appreciation in value.
Days on market is an average of approximately how long it takes to sell a home in the area. In the third quarter, the average days on market for residential properties was 37 days. To give you an idea of how short that is, the days on market average in September of 2016 was 57 days. In January of this year the average sat at about 64 days. In short, if your home is priced correctly, it shouldn’t take too long to sell it in today’s market.
Interest rates have been brought along in recent months due to other economic factors. Rates are now at 4.75% for a 30-year fixed rate mortgage and 4.25% for a 15-year term. Continuing a trend for the past year, there have been rumblings of a continued increase in rates. The next one could push rates above 5% for the first time since 2010. Historically speaking, our current rates are still low. See the chart below to compare to previous rates.