It’s hard to believe it, but the first half of 2018 is already in the books. So now it’s time to take a look at how our market shaped up in that time.
First of all, sales were down a total of 3% year over year across most of the seven counties I track, which are Vanderburgh, Warrick, Posey, Spencer, Perry, Dubois, and Gibson. However, Vanderburgh and Warrick were each down 5%, Spencer County was down 20%, and Perry County was actually up over 30%.
The big story in the first six months of 2018 was, once again, inventory. There still aren’t enough homes in the market. Believe it or not, supply is in worse shape than it was in 2017. Six of the seven counties I track are down 20% since last year in terms of inventory, while Vanderburgh County is actually down 30%.
The inventory crisis is especially clear when you look at current supply in relation to statistics from the past five years. In June of 2013, there were about 2,300 homes on the market. In June of 2018, there were just 1,068. This is less than 50% of what was available five years ago.
Even so, the number of home sales has remained steady over time, which has contributed to high levels of demand among buyers in our market. We don’t have enough homes on the market right now to satisfy the number of interested buyers.
Moving on, the average number of days on market has remained fairly steady as well. Listings spent an average of 63 days on market in 2017 and an average of 58 days on the market during the first half of this year.
The average sale price is another statistic which has stayed similar to what we saw last year. Since this time in 2017, the sales price has risen from the $154,000 range to the $155,000 range.
Yet, with interest rates beginning to rise, homes are set to become less affordable in the future. This drop in affordability could help to even out our inventory levels, though.
Overall, the lack of homes available in our market is good news if you’re looking to sell, but not so much if you have plans to buy. The key to your success regardless of your goals will be to hire a Realtor who has plenty of experience with similar market conditions. They will know how to help you write a favorable offer, or how to help you market your listing and earn top dollar.
If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.