Buyer Demand Seems to be Slowing
Demand dropped by 2% in the past two-weeks. In the past two-weeks, demand, the number of pending sales over the prior 30-days, decreased by 61 pending sales, or 2%, and now totals 2,393, the lowest demand reading for this time of the year since 2007. Expect demand to drop further from August through the end of the year. Typically, demand downshifts from here because the best time to sell is in the rear-view mirror. Fewer families desire to make a move once the kids are back in school, which is going to occur at the end of August. Many families pull out of the house hunt in August and demand drops.
Last year at this time, demand was at 2,835 pending sales, 18% more than today, or 442 additional pending sales. The expected market time, the amount of time it would take for a home that comes onto the market today to be placed into escrow down the road, increased from 80 to 85 days in the past two-weeks. At 85 days, it is a slight seller’s market (between 60 to 90 days) where sellers still get to call the shots, but appreciation is muted. Last year at this time, the expected market time was at 63 days, substantially hotter than today