The most recent quarterly figures on median home prices and inventory from the National Association of REALTORS® are in. The National Association of REALTORS® Chief Economist, Lawrence Yun, stated, “Housing inventories have been gradually trending down from a record set in the summer of 2007.” With the gap between the number of homes available and the number of homes sold shrinking, home prices in several areas are beginning to increase. In fact, NAR is predicting a 9% increase in homes sold in the next 12 months and a 15% increase in home prices over the next three year period (cumulative).
Indeed, the housing market as a whole is recovering nicely. But if we have learned anything from recent years, it is that a national trend does not necessarily translate into a local real estate market trend.
How has the inventory shifted in our market since last year? Below are the total number of active listings in our market, comparing September 2011 to 2012 numbers:
| 2011 Sept active | 2012 Sept active | Change | |
| Total active listings | 1306 | 1430 | +9.49% |
While inventory in other areas of the country have been declining, inventory in the Tri-Cities has been stable and has increased a bit year over year. However, the additional inventory does not necessarily mean a price slide. In fact, median resale prices have continued to increase 1.9% over the last year, although the number of homes sold has decreased by 1%.
It is also important to remember that when looking at a real estate market, one must also look at demand in specific price points. I have outlined the current inventory (as of 11/12/12) and corresponding price points so you can see how our inventory is spread across these prices. As you can see, the bulk of our market (78%) is under $300,000.
Current Inventory (active property listings)
$0-$150,000………………………. 399
$151,000-$200,000………………. 440
$201,000-$300,000………………. 569
$301,000-$400,000………………. 237
$401,000-$500,000………………. 76
$501,000-700,000………………… 66
$701,000-$900,000………………. 13
$901,000+…………………………… 4
If you have questions on what these figures mean to you, please don’t hesitate to give us a call. You can reach Jennifer Cowgill at (509) 947-5670 or Jessica Johnson at (509) 947-2230.
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