Inventory levels are improving, and this is excellent news for those looking to invest in real estate.
Home sales are up in May at 5.8% over April but down compared to May 2021, which was 8.5% more. However, the actual median sales price is rising, which means that the seller market is still in existence despite slowing down. It is important to note that if you plan to invest in real estate at this time, you must assess your financial position and how you plan to purchase the property. The financial vehicles will influence your ability to buy a property or home you desire while also making a sound fiscal decision. Still looking at May, the median sales price for May was $430,000, up 1.2% from April and 13.2% from May 2021. In addition, there is still apparent demand. Homes spent an average of 23 days on the market in May, down three days from April’s average of 26. Although May is one of the most active months of the year for home sales, closings in May 2022 were 8.5% lower than in May 2021. They did, however, climb 5.8% over April. That month-over-month increase was approximately half the average gain in May during the pre-pandemic years of 2015-2019.
After a long decline, inventory grew for the second consecutive month, making May the first month of 2022 to top inventory levels compared to one year ago. May ended with 16.3% more homes for sale than in April and 2.2% more than May 2021. Months Supply of Inventory increased from 0.8 in April to 0.9 in May. A year ago, the Months Supply of Inventory was 1.0. This is important because buyers can now have more choices and likely meet their desired real estate goals with their purchase.
Do you have questions, or would you like to learn more? We’d love to visit with you at 307-635-0303.