Home sales, while still substantially below the record numbers achieved in 2022, were up in May, right along with prices. The path to achieving a balanced market has been full of ups and downs, largely influenced by fluctuating mortgage rates. However, buyer demand remains strong, as indicated by the fact that homes are selling, on average, for the full list price of 100%. This demonstrates the continued interest and eagerness of buyers in the market.

On the flip side, sellers are hesitant to list their homes due to several factors. One reason could be that they have low-interest rates on their current homes, which are lower than the current market rates. This situation makes them less motivated to sell and potentially face higher interest rates on a new property. Additionally, the lack of available desirable housing options may discourage sellers from taking the leap.

As a result, the current market landscape reflects a delicate balance between strong buyer demand and seller hesitation. Let’s look at the numbers for May!

KEY FINDINGS FOR MAY

• The number of active listings increased 15% year-over-year (May 2023 vs May 2022) while decreasing 3% compared with April 2023.
• The number of May sales dropped 35% year-over-year but increased 16% compared to April 2023.
• In May, the average sales price went up by 8% compared to the previous year, and the median sales price increased by 14%. When comparing May 2023 to the previous month, the average sales price rose by 23%, and the median sales price increased by 18%. The majority of this increase is due to more homes being sold at prices exceeding $1 million. In May, 33% of the homes sold were priced at $1 million or higher, whereas in April, only 10% of homes fell into that price range.
• In May, the “Close to List Price Ratio” for all sales was 100%. This means that, on average, homes were sold for the price they were listed. However, there was some variation, with the ratios ranging from 91.9% to 112.2%. For homes that were sold within the first seven days of being listed, the “Close to List Price Ratio” increased to 101% in May from 100% in April.
• In May, homes in the area sold even faster, with the median number of days on the market decreasing to just 7 days compared to 9 days in April. This activity level is on par with the market’s peak in May 2022, considered one of the busiest periods. It indicates a highly competitive market with significant buyer demand and reinforces the notion of a strong seller’s market.
• Inventory for single-family homes has increased slightly from 2.8 to 3.0 months, but it remains 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 May is a beautifully renovated 3-bedroom, 2-bathroom bungalow with a heated saltwater pool located just outside the Heights South Historic District. This exceptional property was sold for an impressive 112% above its list price, approximately $134,000.

*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 HOMES	MAY 2022	MAY 2023	YOY CHANGE	APRIL 2023	MOM CHANGE
ACTIVE LISTINGS	152	175	15.1%	181	-3.3%
SALES	122	79	-35.2%	68	16.2%
AVG SALES PRICE	$859,900	$929,186	8.1%	$755,708	23.0%
MEDIAN SALES PRICE	$743,750	$849,900	14.3%	$723,530	17.5%
AVG DAYS ON MARKET	34	55	61.8%	67	-17.9%
MEDIAN DAYS ON MARKET	6	7	16.7%	9	-22.2%
CLOSE PRICE-TO-LIST PRICE RATIO	100%	100%	0.0%	99.8%	0.2%

SOLD TO LIST PRICE RATIO ANALYSIS-APR 2023

DAYS ON MARKET	ALL	0-7	8-30	30+
HOMES SOLD	79	46	18	15
MEDIAN SALES PRICE/LIST PRICE RATIO (SP/LP)	100.0%	101.0%	97.8%	98.9%
SP/LP RANGE	91.9-112.2%	93.1-112.2%	91.9-107.3%	93.9-102.3%

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