Repeating the pattern that began this January, sales in March were lower than last March because of severely limited inventory. With only a 9-day supply of available homes, buyers are competing with each other, pushing average prices up 16.6% over the last 12 months. Multiple buyers, escalation clauses and audacious offers have become regular stories in our residential market.
The supply of resale or existing properties is so limited that the price per square foot of existing properties has risen above the price per square foot of new homes, a phenomenon not seen in my 40 years in this market.
Anecdotal data reveals that many owners are holding on to their properties for fear of not being able to find a replacement property.
The data below compares first-quarter results for the last 4 years of limited inventory during which time the average sold price has increased 49%.