It’s not a coincidence that all you buyers out there are seeing nothing but “stale” listings. Where is the fresh blood, you ask? … those new properties that bring you the joy of untying a bright red bow off a crisply wrapped present? Not yet on the market, it seems. Inventory is down a whopping 35%+ from March highs of approximately 11k to 7k units today. This is leading not only to buyer frustration, but to a visceral understanding of the importance of pricing properties well in this market. Not surprisingly, absorption rates have tended to increase at lower price-points that fall within conforming loan limits, and decrease rather dramatically above the $3MM mark (true across all neighborhoods).
The narrative goes like this:
1) Winter was frozen from Lehman’s collapse,
2) Spring thawed buyers’ interest,
3) Summer lovin’ kicked in with high sales volume based on pent-up demand and better pricing, defying typical seasonal doldrums, and
4) Fall/Winter maintained the trend, as attractive inventory continued to be swooped up.
For all you eager buyers out there, take heart: December and January are known for taking properties off the market to refresh them come Spring. Expect new inventory to come on-line shortly.