Summit County home sales fell fast in July. While June had moderately disappointing sales numbers, the bottom fell out in July. The number of Summit County home sales in July were more typical for January and February, some of our slowest months. As a result of fewer sales, homes are on the market longer now. In fact, homes were on the market one third longer this July than last. Good news for buyers as we are seeing a rise in homes on the market. That equates to more choices when hunting for your Summit County getaway. There is good news for sellers too though. It is still a seller’s market, and it’s likely to be a seller’s market for a while. That sounds contradictory, I know. Let’s dig in.
July home sales fall
There were 85 home sales in Summit County during July. The last time there were so few sales during the month of July was back in 2011. That was during the last recession. With the exception of the beginning of the pandemic when everything was shut down, there have only been five months with fewer sales over the last seven and a half years. Those five months with home sales below 85 all occurred in January or February.
Time on market increasing
Of course, if there are fewer sales happening, homes will be sitting on the market longer. It’s logical. The average days for a home to sell in July 2022 was 24. Compare that to July 2021 when it was 18 days and we have a 33% increase. However, 24 days is not a long time for a home to be on the market. In fact, that is pretty quick. The last time there were 85 residential sales in July, 2011, it was taking 163 days, on average, for a home to sell. In fact, over the last ten years, with the exception of 2021, not one July had an average even close to 24. The lowest average days on market was 37 in 2018.
Another consequence of home sales falling is rising inventory. If sales are slower, there are more homes available. We do typically see the number of homes for sale rise in the summer months. As ski season ends and owners take them out of rental programs they come on the market. Inventory rises until around September, then starts it’s decline. There have been around 450 homes for sale in the county since the beginning of July. That is double the amount there were last July. However, it is nearly half of what we would like to see. A balanced market would have about a six month supply of homes for sale. Depending on the time of year, 700-900 is an ideal number. That’s enough homes for buyers to have a decent selection and to give the market healthy competition.
A seller’s market
Because the number of homes for sale is still low, the lack of supply can give the seller an advantage. This is often referred to as a seller’s market. Even when the entire market is considered a seller’s market, as it is now, some areas can buck the trend. This is when looking more specifically into the market is important. Sometimes there will be a lot of properties for sale in one condo complex or neighborhood. Or maybe one price point or home type is saturated with homes for sale. These properties may need to price more competitively in order to sell. The opposite is true too. If nothing has been for sale in a condo complex or neighborhood, there may be more demand when something comes up for sale. Even though inventory is building across the county, a home may still see competing offers. While the average percentage of list price a home sells for has fallen to 98.6%, some homes are still selling above asking price.
There are a lot of factors that made Summit County home sales fall fast in July. Things like interest rate hikes, talks of recession, and short term rental regulations create uncertainty. That uncertainty can make it hard for people to move forward no matter the plan. One thing is certain, Summit County is a great place to spend your time.