It's no secret the Fed's plan to slow down the real estate market is working. Here's what's happening in Summit County
The high Number of new Listings is Normal
In June 2022 the Summit County MLS had 483 new real estate listings. If you've been subscribed to my real estate listing alerts, it may have seemed like everything is on sale. However, that's only because we were bouncing back from a near record low number of listings and we're finally seeing a slow down in demand. But in reality, June is always the busiest month for new listings in Summit County.
Active Listings are up but Inventory is still low
There has not been this many available mountain properties for sale since August of 2020. But the June numbers of 1,110 Active Listings is still relatively low compared to our pre-covid inventory numbers. As I mentioned above, June is always the highest number of new listings so even if demand just stays flat, expect active listing numbers to trend back downward.
Months Supply of Inventory is up, but still low
Months Supply of Inventory is calculated by determining the number of homes sold per month and dividing by the total number of properties for sale on the last day of the month. Much like above, we're headed back towards a more normal level of supply but Summit County is still historically low.
What's happening with pricing?
June 2022 price per square foot is up 19.2% from June 2021 but we are seeing a slight decrease from the April 2022. If I had a crystal ball, I think the April high would be the record for around the next year. We should get back to a place where negotiations can occur between buyers and seller. However, I am not predicting a long-term large price drop.
According to the Pulsenomics 2021 Q3 Home Price Survey. Prices are expected to continue to appreciate until 2025. With most of the appreciation having already occurred, and modest appreciation to follow. If you're looking to purchase, this means waiting will cost you, not just with home price but also with interest rates continuing to rise until Summer 2023.
Summary
We're getting back to a more normal market but that doesn't mean we're in a crash. Properties are going to take longer to sell but in the long-term there are still record high prices to be seen in Summit County. If you're ready to buy now, I think you're in a great place to negotiate below list price and look back at yourself like a winner. All that being said, we are in unique times with the treasury raising interest rate while entering a recession (normally it's opposite). I would not recommend overextending yourself for a second-home right now but if something is comfortably in your budget, go for it!