While it’s not yet showing up in the data, realtor contacts are widely reporting a significant decline in the number of bidders on properties, as well as an increase in the number of failed bidding wars.
Inventory levels are still low, but here’s where the story gets interesting…
The sales/new listing’s ratio fell sharply compared to the prior 2 years, and that allowed for an unusually large build in inventory. How large? Active listings at the end of the February were 2,800 higher than at the end of January. That’s nearly double the typical monthly build for this time of year. And when we express that change in percentage terms, the chart speaks for itself.
We will continue to watch inventory levels over the coming months, as still too early to consider this a trend. As Yogi Berra would say“ it’s tough to make predictions, especially about the future”