Here’s what is happening in the $4 million-plus price range. Would you be surprised to know that there have been more sales in this price range in the first three quarters of 2020 than in the same period in 2019?
This is despite the market being effectively shut down earlier this year for more than 50 days. At this price point, we typically do not have a huge number of transactions. But we have seen an increase of 30% more closed sales this year vs. the same period last year. Now the real shocker: if we compare pending sales as of September 30, 2020, to the prior year, we are up more than 188%!
We talked previously about tax migration and COVID-19 acting as a catalyst for the market. In this segment, we focus on the implications of the third-quarter results across the board. What happens when both closed and pending sales are up significantly from the previous years? It means the inventory of available homes for sale is decreasing. The months’ supply of inventory in the $4 million price range is down 14% from 2019; the months’ supply in the $2 to $4 million range is down 35%; and the months’ supply in the $1 to $2 million range is down more than 42%. This will most likely translate into upward price pressure in most price segments in the fourth quarter.
For more information about these stats or your local neighborhood, please contact me.