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 You have to wonder when this is ever going to end. Yet another month of increasing inventory and decreasing sales.
We did see average home prices drop - but only by a single digit - not nearly enough to draw more buyers into the market.
In addition, consumer confidence numbers are painting a picture of buyers that are waiting out the market - expecting values to drop even further.
Read on for all the details.
Supply And Demand
Here we are at what is supposed to be the beginnings of the hot summer season and the market appears to be cooling instead of heating up.
Again, we are setting a record for high inventory. From the same time last year, inventory is up a whopping 22.8%. That gives us a total of 302 homes currently on the market in Morgan Hill.
In addition, sales are down 25% from last year. That is only 30 homes sold in the month of June. If we were assume that sales were to remain the same and the inventory stopped growing right now, that would leave us with over 10 months of inventory!
The only small bit of good news is that the number of homes added to inventory this month is down from last year. This also bucks the usual trend of sellers listing their home during the summer season - sellers seem to be getting the idea that this is not the time to be listing your home for sale.
If we take a look at past months, we can see some trends that can be expected for the time of year, but also some that tend to go against what we normally see at this time of year.
Again, we see fewer new listings in the short term. We normally see an increase from May to June, but not this time. I think this will work to help bring down the inventory numbers as sellers get the clue that this is not a good time to sell.
We would also normally expect to see sales increase by some amount between May and June. In this case, we saw the opposite. This does not bode well for the rest of the selling season.
Only time will tell, but so far, the summer selling season is shaping up to be the most disappointing in decades.
Home Prices
For the second straight year in a row, we see the average home price dropping in Morgan Hill. The average home dropped 3.3% from the same time last year.
Currently, the average price of a home in Morgan Hill is $ 835,911. The slightly lower median tells us that more homes below the average are selling than above the average.
The good news is that the drop in price has been gradual. We have not really seen any double digit drops and that has helped to reduce the sting of our down market. However, it is creating an environment where buyers can get some great deals.
Days To Sell
Since 2004, we have seen this number steadily rise. This year, we set a new record of 76 days to get a home sold.
With this 31% increase in the time it takes to get a home sold in Morgan Hill, sellers are having to face the idea of reducing their price and making their home the best in its price range.
Only homes that are the very best in their price range are managing to get sold in any kind of reasonable time.
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