In just a few short months we’ve seen the number of houses available for sale per buyer (8.64) climb to levels we have not seen since late 2008 and up a whopping 63% from August last year!
With buyer demand having slackened so substantially after the tax credit expiration even a relatively normal amount of houses for sale are spread amongst far fewer buyers, giving buyers more choice (and in theory more negotiating power) than they have had in some time. Normally we see spikes in the SDR in the November & December time frame as buyers hibernate over the holidays and cold & dark nights. Instead of the normal calendar cycle we instead have the chill brought on by the aftermath of a couple years of extraordinary housing stimulus.
We will likely see home prices fall some in response to Buyers’ new found leverage but how much and how quickly remains to be seen. I wouldn’t be surprised if we gave up all of the median sales price gains from earlier this year by the end of this year.
Shameless Plug:
Looking to buy or sell a house? Take a look at the MLS-listed homes available for sale below or call me anytime: 1-800-941-0959.
