Pending Inventory is Dropping

Pending inventory is a great way to track the current level of demand for a community. As of late, our pending inventory is dropping suggesting that the days of “bids”, might be behind us.

Pricing is up year over year, but so are interest rates and it appears that our market is running out of runway for continued 20% year over year growth. Year over year, we’re still up by roughly 13% overall. However, at this time last year, we had roughly 60% of our inventory in escrow. Now, we’ve cut that in half. Following this, we ought to begin to see our days on market begin to grow as well.

Buyers are still out there. However, with higher rates and higher prices, they are being far more discerning and the percentage of inventory that is in escrow is a direct reflection.