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Becky's Best Bungalow Bets: June 2023 Market Update for the Heights

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July 15, 2023

Becky's Best Bungalow Bets: June 2023 Market Update for the Heights

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Sales in the Heights have seen a notable decline, even when compared to the pre-Covid years, signaling a substantial shift in the market. Year-to-date sales have dropped by 37% from their peak in 2021 and are still trailing 22% behind the numbers from 2019, the last pre-Covid year. Despite this deceleration, property prices persist in their upward trajectory, though the pace has moderated, underscoring the sustained demand in the market. Properties are also staying on the market for longer periods, suggesting a slight easing in the urgency among buyers. Yet, with a mere three months of inventory available, the market continues to favor sellers.  Let’s dive into the numbers for June!

KEY FINDINGS FOR JUNE

  • Active Listings: The number of active listings increased by 2.2% from June 2022 to June 2023, and by 7.4% from May 2023 to June 2023. This suggests that the inventory of available properties for sale is growing.
  • Sales: The number of sales decreased by 18.5% from June 2022 to June 2023, and by 6.3% from May 2023 to June 2023. This indicates a slowdown in the number of properties being sold.
  • Average Sales Price: The average sales price increased by 9.7% from June 2022 to June 2023, but decreased slightly by 0.4% from May 2023 to June 2023. This suggests that while property prices have generally been rising over the past year, they have recently started to stabilize or even decrease slightly.
  • Median Sales Price: The median sales price increased by 6.4% from June 2022 to June 2023, but decreased significantly by 9.9% from May 2023 to June 2023. This could indicate that while the overall trend is towards higher prices, the market has recently seen a greater number of lower-priced properties being sold.
  • Average Days on Market: The average number of days properties stay on the market before being sold increased significantly by 65.7% from June 2022 to June 2023, and remained the same from May 2023 to June 2023. This suggests that properties are taking longer to sell than they were a year ago.
  • Median Days on Market: The median number of days on market also increased significantly, doubling from 7 days in June 2022 and May 2023 to 14 days in June 2023. However, it is important to note that even with this increase, 14 days still represents a relatively low median number of days on the market compared to the years before 2022.
  • Close to List Price Ratio: The ratio of the closing price to the listing price decreased slightly by 1.0% from June 2022 to June 2023, and remained the same from May 2023 to June 2023. This suggests that buyers are slightly less willing or able to pay above the listing price than they were a year ago.
  • Inventory: Months of Inventory* for single-family homes has remained at 3.0 months, solidly a seller’s market. This means there are more buyers than available homes, giving sellers an advantage. Buyers should expect competition as they search for a home.
  • The top spot for the highest sale above the listed price in June is an updated Victorian inspired 3-bedroom, 2-bathroom home located just outside the Heights South Historic District. This property was sold for an impressive 111% ($91,000) above its list price.

*Months of Inventory is a measure of how fast all the existing homes on the market would last, assuming a) no more listings are added and b) the rate at which homes sell is a constant figure based on the average of the last 12 months of sales.

HEIGHTS* KEY MARKET INDICATORS -SINGLE-FAMILY HOMES

SINGLE-FAMILY HOMESJUNE 2022JUNE 2023YOY CHANGEMAY 2023MOM CHANGE
ACTIVE LISTINGS1841882.2%1757.4%
SALES9275-18.5%80-6.3%
AVG SALES PRICE$841,021$923,0109.7%$927,105–0.4%
MEDIAN SALES PRICE$705,000$750,0006.4%$831,950-9.9%
AVG DAYS ON MARKET355865.7%580.0%
MEDIAN DAYS ON MARKET714100.0%7100.0%
CLOSE PRICE-TO-LIST PRICE RATIO101%100%–1.0%100.0%0.0%

(YOY=Year Over Year; MOM=Month Over Month)
Source: HAR
Note: Median represents the “middle” number and better represents central tendency than average. For example, the median sales price is the figure at which half of the homes sold for more and half sold for less. 

SOLD TO LIST PRICE RATIO ANALYSIS-APR 2023

DAYS ON MARKETALL0-78-3030+
HOMES SOLD75352119
MEDIAN SALES PRICE/LIST PRICE RATIO (SP/LP)100.0%100.8%98.8%100.0%
SP/LP RANGE79.2-111.4%93.4-111.4%79.2-100.0%96.5-108.0%
This table represents Heights single-family home sales in June 2023. There is an average 30-day lag between contract and sales date, so consider that many of the sales represented here went under contract in May 2023.
Source: HAR