We have been feeling like the market has been softening this year. Now that we are past the first half of 2019, Summit County market conditions are confirming our suspicions. Or are they? We had a cold spring with ski areas open longer and fewer summer visitors than normal so maybe that has something to do with our unimpressive numbers.
The Number of Residential Sales is Down
This has been the slowest first half of the year since 2014. We had 613 residential sales that year compared to 679 this year. Some of the monthly sales have improved year over year while others have dropped drastically. February had the most sales in February since 2008! June had the fewest sales since 2014. Meanwhile, April was pretty consistent with past Aprils.
Residential Inventory is up
Residential inventory levels have grown substantially this year. We have 35% more properties on the market this year than we did at this same time last year. With over 700 properties for sale, we have more inventory than we have had at any time since 2015. Approximately 1800 properties sell each year in Summit County so even with 700 properties for sale, we are still hanging on to the seller’s market we have been in the last few years; but just barely.
Average Sale Price is up
More properties on the market force sellers to be more competitive with their prices. That should help to slow the appreciation we have seen in Summit County recently. The average sale price so far in 2019 is $822,716. That’s an 11.8% increase when compared to the first six months of 2018.
Don’t Rely on Average Sale Price
Average sale price needs to be taken with a grain of salt. Over the past five years, we have seen more homes over $1,000,000 selling and fewer under $400,000. That change alone will increase the average sale price. Just because the average sale price increased nearly 12%, it does not mean the value of your Summit County home went up 12%.
Pending Sales are Similar
The number of properties under contract is slightly higher now than the same time last year. However, 34% of our under contract properties are new construction. That means they won’t be closing in the typical 30-45 day period. With the amount of new construction going on in the county now, that is probably just slightly higher than in years past.
Time to Sell is Consistent
The average time a property spends on the market is just over one month at 38 days. That’s the same as it was this time last year. However, the number of properties that are selling in the first 30 days has been growing for the past few years. In 2019, we are seeing it level off.
The Shift has Begun
Nothing drastic is going on with the Summit County real estate market. However, we are seeing more ups and downs instead of just the steady increases we have had while climbing out of the recession. Because no one I have ever met can see the future, it’s impossible to say where the market is headed. All we can say for certain is that is changing. Our steady uphill climb has turned into variable terrain with many ups and downs.
Whether you are a buyer or seller in this market, knowing what the market is doing will help you make better decisions. It doesn’t tell you what to do but is another factor that should play into your decision making.