As we move toward Christmas and the end of the year the inventory is continuing it’s downward slide. It isn’t unusual except for the fact that we started out at a low rate. The total supply is higher than last year but lower than any year previous to 2020. By a lot!.
The supply in 2019 was well over 600, but 2020 saw it drop to 280 and it was at 264 last year. We are nearing the end of the year so we can do a year-over-year comparison. We were still selling a lot of house through June of this year but then the sales started slowing dramatically. Here is where we are compared to the previous 12 years:
Let’s look at a smaller picture, just November:
I’ll stop there. You can see that sales started to increase in 2019 even before covid. At that time we knew we would have a shortage of inventory because of all the millennials moving into the market and the fact that the boomers wanted to “age in place”. But covid made it worse and now the interest rates are continuing that problem.
High interest rates not only discourage buying but they also discourage selling because boomers who might want to downsize don’t want to buy their downsized house at high interest rates.
So here we are…but notice, we are not at abnormally low levels of sales compared to the years before 2019.
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PS I mentioned a link to sign up for the market memo…if you are reading this you already have it, but you can forward to a friend and they can sign up here: Market Memo Sign Up
This representation is based in whole or in part on data supplied by, and to, the subscribers of Alaska Multiple Listing Service, Inc. (AK MLS, Inc.). AK MLS, Inc. does not guarantee nor is it in any way responsible for its accuracy. Data maintained by AK MLS, Inc. is for its own use and may not reflect all real estate activity in the market.