What the Numbers Say About Our Market

    According to the latest numbers, demand is high and inventory is low in our market. We should expect a slowdown soon, but homes will still be appreciating in value.

    What do the latest numbers from the Greenville MLS say about our market?

    First, the median price is up 8.9% year to date. Remember, the median price refers to the number that’s in the absolute middle of all other transactions, so a house that was worth $191,500 last year is now worth $208,650. In other words, your house is worth more now than it’s been in the past 10 years—or ever.

    Next, let’s look at supply and demand and get an idea of where the prices are being pressured. The number of sales has increased 8% year to date. Meanwhile, there are 2.7% fewer homes on the market. This means there’s more demand but less inventory, and that is what’s putting this upward pressure on prices.

    You may have heard that we should be expecting a slowdown happening soon. For our take on this, we look at the yearly average days on market from the past five years:

    • 2013: 93 days
    • 2014: 86 days
    • 2015: 76 days
    • 2016: 62 days
    • 2017: 54 days
    • 2018: 53 days

    As you can see, we only dropped by one day compared to 2017. The average is still going down, but not as quickly. This does indicate a slowdown, but it doesn’t mean prices are going to drop. The average is still going down, so houses are still appreciating in value, just not as quickly.

    At the 2:40 mark in the video above, you can see a graph I drew which explains this effect. Over the next several years, home values will still increase, but not at the same rate as in previous years. For example, if you bought a house last year for $200,000 and it grew in value to $220,000, it might only appreciate to $225,000 by next year.

    If you have any questions about our current market or you’re thinking about buying or selling a home, don’t hesitate to reach out to me. I’d be happy to help you.

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