By Mike Bodeen · 19 October 2020
Our Monday Market Snapshot Newsletter continually adds new viewers. Thus, the weekly reporting that we’ve been doing, seemingly forever, may be old hat, even boring to our regulars who’ve been watching this upward moving market play out for years. However, to newer viewers, the information we offer may seem too incredible to wrap their minds around it.
Today, we want to observe market contrasts, the highs and lows, and where we’re at now. I think all of you will be amazed. I am.
“The last 3 months have seen the price per square foot values rise 8.8%!”
The last 5 months, in the midst of the Covid 19 pandemic, we’ve witnessed a hyper- increase in values, a decrease in listing inventory, and nearing the record of annual sales, despite lack of inventory.
Back in October of 2007, our listing inventory was at 58,000, which was an increase from 8,000 in April 2005 – just two years! So our history lesson today is that radical market changes can happen in a relatively short period of time.
Right now it looks like the lack of inventory and increase in values may not stop soon. The Cromford Report has a 30 day price increase expectation of 3.5% on top of the 3.8% we had for the previous 30 days. Their expectation is that the market will slow when prices increase too high for the buying public.
And that’s why it’s scary to be a buyer right now due mostly to migration from out of state. These buyers arrive with cash proceeds from their (mainly) west coast sales. The last 3 months have seen the price per square foot values rise 8.8%!
Market data referenced in this article comes from The Cromford Report.