This is your monthly homeowner report for Woodcreek. It’s always nice to know where your investment stands, so let’s get started.
It is still a seller’s market. Not all of the sales for July have been recorded yet at the making of this video but we’re trending to be around the $337,500 mark for the average sales price which is a slight decline from June’s average of . Now don’t get too tied up in that actual number because there’s a huge swing in the types of homes available to buy in Woodcreek. What I look at more is the percent increase from the previous year. Based on the current trend for July, prices are up about 27% from one year ago. Not bad Woodcreek, not bad.
We’ve had 17 sales so far in the month of July with an average sales price of $337,677 and they sold with an average of just 9 days on the market. They’re selling at an average 4.85% over asking.
One of the biggest things we know when studying prices like I do every single day is that it’s very hard when a seller’s market is driving prices up to know how much your home is actually worth. So I want to give an exclusive offer only for those who have watched this video. You can click on the link with this video or go to LivingInWoodcreek.com.
There I have a few questions to ask you about your home to help make sure I’m giving you an accurate analysis. Unlike the automated home value generators that rely on algorithms and don’t have access to actual sales data, I will research actual sales prices and look at the specifics on how your house compares to recent sales. From there I will get on a call, a zoom, or even meet in person to walk you through exactly what you could sell your home for in this market right now and cash out.
First let’s look at the months of supply. This tells us how long it would take the current inventory to be purchased if no new listings came on the market. A balanced market is considered 6 months of inventory. For Woodcreek we’ve been on the rise since March. We went from a jaw dropping .2 months of inventory (meaning less than one week) to now sitting at .6 months of inventory, or a little more than 2 weeks. We’re headed in the right direction for buyers though. This tells us that it is still an incredibly strong sellers market. I expect this trend to continue to creep up, but still at a slow pace.
The average days on market for current listings that are pending sale is at 32 days. For the homes that are most recently under contract, that average has gone down to 19 days. This tells me buyer demand is still incredibly strong, if not stronger than before.
To see where the market is headed as far as pricing goes, I look at what’s happening with the actual sales prices as a percent of the list price. While not all sales have happened for July at the time I’m recording this video, we’re almost finished with the month and we’re averaging 4.85% over asking. That’s down from 5.4% over asking in June and the record of 7% over asking in May. We are starting to see a lot of buyer fatigue and people are not as willing to offer so much over asking as they once were. In the larger market we’re seeing more inventory so unless someone is absolutely set on being in Woodcreek, they’re not so willing to overbid on the offer.
There are some other factors to consider on a larger scale that affect us on a local level too. The fact that interest rates are still below 3% is huge. Even though this tends to be the start of the leveling off of the real estate market so people can get settled before school starts, mortgage applications increased 5.7% from the previous week. We’re getting more buyers in the market.
So to recap, the months of supply are slightly up. The average days on market is going down. The percent of the sales price over the asking price is going down. Interest rates are under 3% and we have an uptick of buyers in the market. Historic seasonality trends also tell us this is the time the market starts to slow down from the spring/summer season. Based on this information I predict we will continue to see strong opportunities for sellers in this market but we will continue to see a decline in the amount people are willing to offer over asking.
And remember, visit LivingInWoodcreek.com to learn exactly what you could sell your home for in this market right now and cash out.
Jennifer Shannon is a Texas real estate agent and broker, licensed since 2006.