This year we have had a full-fledged frenzy, with both sales and pricing on the rise. Is it still a frenzy if prices increase, but sales drop off?
Because the sales counts look like they will be feeling the usual seasonal decline this year, which didn’t happen last year. The late-2012 push (during the election!) helped to drive a robust 2013.
If the frenzy does get whipped up again next year, it will be the lower-end buyers leading the charge, because they are really feeling it. Today there are only 104 NSDCC houses for sale under $800,000, when 67 closed last month!
NSDCC Detached-Home Sales, September
| Sept Sales & Avg $/sf | |||
| 2011 | |||
| 2012 | |||
| 2013 |
In the lower range it looks like the sales counts are off – but it’s only because prices rose so fast that sales are jumping into the higher ranges.
The over-$800,000 sales increased by 40% year-over-year!
Just as this post published, this came over:
http://www.housingwire.com/articles/27657-pending-home-sales-fall-on-declining-home-affordability
Good thing real estate is local.
We here a bit “upcoast” are seeing similar if less frenzied activity. Low end disappearing for many reasons. Upper quintiles moving at a steady pace and at higher prices.
That said, I hope you are getting your share now as I suspect 2014 will at best come close to 2013. I do not expect it to drop to 2012 levels.
Why the slowdown in the lower price tiers? Interest rates disqualified a few potential buyers. Rising values changed the plans of some potential sellers. Ever more of the houses suitable for renting are not being recorded through the normal channels.