We usually see a summer market slowdown in July and August. But this year, it seems to have arrived bit early. There are noticeably more listings out there at the moment than there are buyers willing to meet sellers’ asking prices.
The numbers tell the story: 73% of active condo listings and 57% of single-family homes have been on the market for 30 days or more. New inventory is already tapering off, giving us a roughly two-month window to clear out much of this lingering supply before the usual post-Labor Day flood of listings hits.
So what’s the holdup? Unsurprisingly, it’s price. The average sale price for single-family homes in Q2 was $2,240,238, while the average list price for homes that haven’t moved sits at a much steeper $3.5M.
Same goes for condos. The average Q2 sale price was $1,374,305, yet those that have been sitting on the market for 30+ days are listed at an average of $1.5M.
It’s likely that many of these market sitters will start feeling pressure to make a move this summer. Sure, some sellers will hold firm, unwilling to part with their property for less than their target price. But others may come to terms with current market realities and be open to negotiating.
Buyers, collaborate with your agent to uncover potential opportunities, and don’t overlook homes that may currently be overpriced.
[Photo above of 85 Uranus in Corona Heights, courtesy of Compass. This two-level condo has views, an exclusive-use garden and private garage. The property was listed in April for $1,750,000 and just had a second price reduction to $1,695,000 on Friday, FYI.]