CLARK COUNTY HOUSING Market
June 17, 2020
HIT BY A DOUBLE WHAMMY
You won’t read this in the paper.
Demand continues to rise while supply falls and interest rates stay super low.
For the past several weeks I have been reporting that our housing market is experiencing steadily growing buyer demand and reducing supply. This trend is continuing steadily over the past 9 weeks as evidenced by the graphs above.
A quick look at the top graph shows a low in early April caused by Covid and the week long lockdown when we could not show homes at all. Since then buyer interest has increased steadily and most recently exceeded the high of the year.
A glance at the second graph shows with the red line that listings, while normally would be rising this time of year to match the growing buyer demand, is instead falling slightly. This double whammy shown in the two graphs is causing a very tight market.
It is not particularly uncommon for the market to be this strong but it is surprising considering we are in the middle of a pandemic with 40 million unemployed and national protests in cities all over the world.
It was not that long ago that our market was even stronger. In 2017 our Inventory ratios were at 1.6 as compared to 2.3 today. Also, buyer activity was at 4770, more than 700 above where we are today and in 2017 we had 1241 listings, over 60 fewer listings than we have today. So, crazy as it is today for a real estate broker during a period of hyper-activity, we have not yet set any records…… but we may be heading in that direction.
- Buyers will find it difficult to find the home that meets their full list of needs because of reducing inventory.
- Buyers will likely need to make several offers before they fully realize the extent of the competition and how difficult it is.
- Buyers can expect the lowest interest rates we have seen in many decades. This is the reward to buyers for their hard work.
- Sellers are now enjoying a period when home values are rising quickly and homes are selling fast.
- Investors and owners with a property having a dysfunctional floor plan or location problems can sell it quickly now at a good price when otherwise it might not sell without severe discounting.
- If you wish to sell later this year but are not ready to move out or are concerned the market may weaken later, consider finding a buyer now while the market is strong and negotiate a delayed close or renting back after selling. The market is that good now and will change eventually.
Let me offer an example of how the market has changed the past few weeks.
On April 14 I listed a home priced just below $400,000. While it was on the market for 3 weeks, showings were slow. We received one offer 3 weeks later well below list price. The home went pending but as the result of buyer financing issues, the home went back on the market June 10, 2020. This second time on the market, we had 6 showings and 3 offers, all above the list price.
That is how much stronger the market became in just 2 months.
If you wish to sell later this year but wish to take advantage of the strong market now instead of waiting and risking a slower market, there is a way to make this happen. Give me a call to discuss how this can happen.
Chris Kelsey, Keller Williams PP
PS: If you would like this Market Update emailed directly to you then email me with that request and I will happily add you to the list. Your privacy will be 100% protected as i never sell my list, give it to others or use it for purposes other than keeping you informed.