As we continue on into the spring real estate market, the market is showing signs growth. Month over month, we’ve witnessed a significant uptick in new listings, accompanied by homes swiftly going under contract at nearly twice the rate, indicating robust demand. However, this surge in activity also amplifies the ongoing shortage of supply, pushing mean pricing up by 3.5% month over month and year to date 6%.
The heart of this market strength lies within the sub $1M categories, where a bulk of the demand is occurring. Buyers are feeling the pinch of rising prices and seek to be very conscientious of payment costs. Despite the volatility in mortgage rates, fueled by sustained job growth and lingering inflation concerns, competition remains fierce in this price range. Conversely, the $1M+ category presents a different scenario, characterized by fewer bids per home and prices holding steady close to list.
Understanding these distinct dynamics and breakover points within different price ranges is essential for both buyers and sellers navigating the real estate landscape. Whether you’re looking to buy or sell, being armed with this knowledge will ensure you’re well-prepared to make informed decisions in today’s evolving market.
