"We're running out of synonyms for stable. Local home prices are appreciating, but at a more gradual rate than they have been in many years." GLVAR President Janet Carpenter said in a statement. "As we've been saying for months, the local housing market hasn't been this stable in nearly 20 years."
What brings that stability?
- The overall housing market has cooled down over the past few months. Inventory has increased slightly, but it's keeping pace with demand. Both builders and city licensing authorities have been cautious not to go too far with overbuilding.
- Median sales prices are down in July, 0.3 percent compared to June, but 4.5 percent up from the previous year. This shows a mild softening, but nothing to worry about.
- At the end of July, there were 7,808 houses for sale. That's down 0.1 percent from June, but 63.1 percent higher than the same time last year. This indicates that the inventory is stable and that it's holding its own against home purchases.
- Single-family home prices have reached a tipping point beyond which there's a movement away from houses to condos and townhouses. House prices are probably going to lower a little or stay the same and continue to feed the demand at just the right level.
- Buyers aren't just grabbing anything they can find. They're taking their time and looking for the perfect house. This is because the prices of the houses are high enough to no longer make a house a simple flipping opportunity, but something buyers will need to hang onto for years to recoup their investments.
This stable housing market is important for buyers and sellers.
Buyers - Prices will be predictable and there is a steady flow of homes onto the market, both new and preowned. This is the perfect time to relax and take your time.
Sellers - Selling a home can be simple since you know the prices around you are going to remain about the same. If you need to sell fast, you can sell for a little less than your competition and your house will be significantly more attractive. This prevents you from having to guess what the homes in the city will be worth; they will be relatively stable at around the same price for a few months.