Sale price to Active Listings and what it means

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Real Estate

Notice this simple yet effective diagram of the status of the market here in Prosper.  I know this looks similar to the graph for all of Collin County but what it shows is the direct result of too much or too little inventory on prices.  With inventory steady through '13 prices rose steadily.  In late '13 and early '14 there was a dramatic dip in inventory accompanied by a sharp spike in prices just a few months later.  Then inventory rose quickly through '19 and prices at first leveled off and then began declining through early '20.  With Covid we saw a dramatic drop in inventory to '11 levels and you see the accompanying spike in prices that came with the dramatic loss of inventory.  So if we extrapolate this basic data, prices will level off or even eventually go down a bit once inventory recovers, assuming of course that demand remains steady.  If demand dies off then the price decline would be much more dramatic.

However, what was holding inventory back during Covid is not what is now holding inventory back from the market.  Then people were afraid of the unknown and having Covid spread through their homes.  Now, people are concerned that with the dramatic increase in prices for both new and resales, I have addressed the new home prices  in previous blog post, Builders are only selling spec homes... why?, and home prices overall in the post Why are home prices surging?.  They know if they sell that they probably won't be able to buy as nice a house as they have for the same money so it's best if they hold, improve and wait.  I've also addressed when the prices might begin to level off and even fall here in State of the Market.  

So feel free to review the articles and contact me with any questions you might have.  Meanwhile ponder an old Chinese curse, "May you live in interesting times".