One of the best stats to look at to see the state of the Real estate market is the months of inventory. What this means is that if there were no more properties listed how long would it take to sell all the homes based on the number or rate that homes are selling right now. As you can see with the following chart there has been a massive gain in months of inventory on the market. Back in May there was less than a months worth of inventory. Since that inventory also includes properties that are less desirable it is easy to understand why every decent property was getting snapped up. Today we are over 5 months supply. This is resulting in homes staying on the market much longer, and the amount of showings slowing down. We are also seeing a willingness from sellers to accept offers conditional on selling a house, which was unimaginable in the spring. Prices have dropped since the spring by about 15%, but buyers are hesitant waiting to see whether there will be further drops in price and how the new mortgage rules will affect them and prices in the new year.
What we are seeing now is a return to a normal market. Buyers can now look around to find their ideal home as opposed to being afraid they are being pushed into a home that is not ideal by the market. Great time for buyers, not so much fun for the sellers, Ken