May was a month to be watched! Although we didn’t know it at the time, this was PEAK prices for sales, and seemingly overnight the market took a steep and swift correction. Homes lost 12% of their value from May to December, but the good news is that prices for all property types are up month-over-month, and homes are only down 3% from the peak and condos are down 7% from the peak.
This data also helped renew my faith in the overall health of the condo market. Although condos are selling for a bit below list price, and still sitting on the market for about a month before selling, we have more optimistic metrics this month as well. We saw a reduction in our months supply of inventory (while houses saw a slight increase), and we had month-over-month price increases, as well as strong number of overall sold condos. We have a lot more inventory than we have had over the last few years, but condos are still selling and selling for almost list price.
The early surge of listings and sales leads me to believe we are following the same trend as last year, with an early start to the Spring selling season, followed by an even earlier slowdown. Sellers that have already pended of sold for this year will likely have hit the sweet spot for selling a home in 2019. For those of you looking to sell now, remember that a home that sold even just 2 weeks ago entered the market in a different environment, and adjustments in your pricing strategy need to reflect the moment in the market that you decide to list in. Stay tuned to the weekly inventory updates for a week-by-week update on the pulse of the market.