Facebook
X
Pinterest
Copy Link
I noted this last month and it’s roughly the same story: more inventory and fewer escrows. In contrast to last year, we have a nearly 17% increase in inventory, but a 10% decrease in the volume of escrows. This is another indicator that our market is slowing down. In contrast to the year before Covid, we’ve got nearly half the inventory and a little more than 50% more in inventory. Proportionately, now we’ve got about 22% in escrow. Last year it was 28%. The year before COVID we had about 19% of our inventory in escrow.
So what does all of this mean? This is an indication of still relatively low demand correlating with low inventory, but that correlation is weakening. This is a reflection that we are definitely not likely to see 20% year over year growth. However, we still have a higher percentage of inventory currently in escrow than we did prior to Covid reflecting a relatively stable or strong market. We probably will continue to have growth, just less than we did through Covid.
We also have a couple of external variables that may be affecting this market: the election and impending changes to interest rates. It’s astonishing to hear how many people would rather suspend their sale either listing their home or purchasing their home. As a result, we might have artificially low numbers for both listings and escrows. Couple this with the growing anticipation of rate decreases and we have another reason for artificially low listings and escrows.
No one has a crystal ball. However, I think there is excellent justification for a rip roaring spring 2025. In the meantime and for additional input in our current, buyer trending market, take a look at the article below. Watch Months-of-Supply
