Anecdotal evidence from our agents (commenting on fewer showings on listed properties, fewer people attending open houses, etc.) has been backed up by recent results. Unit sales were down this July compared to last July by 29%, the highest reduction of same month sales in the last 14 years (see the chart below). Pendings - contracts in escrow at the end of the month - were also down 18% compared to the level of pendings at the end of July 2020. Pendings, of course, are the best predictor of near-term future sales.
Part of the reason for the slowdown is that the average price of properties sold this July ($624,881) was 43% higher than last July. The median price ($535,000) was 40% higher.
An aftereffect of lower sales is higher inventory. Ada County housing inventory at the end of this July grew by 19% compared to the level of inventory at the end of July 2020. Despite that increase, we still have only 30 days of available residential properties, far from an over-supplied "buyers' market".
What should we do? Sellers, if this trend continues, future prices may be lower than current prices so, if you're thinking of selling, now may be the best time. Buyers, make sure the prices of potential purchases make sense to you. A professional Group One Sotheby's agent can help in that regard.
The chart below shows the record of same month July sales for the last 14 years: