The number of May sales dropped month-over-month, even when we tack on another 10-25 late-reporters to the current tally:
NSDCC April sales: 357
NSDCC May Sales: 294
The April, 2021 sales were 35% higher than in April, 2019, but this year’s May sales were about the same as in 2019 (297). Was it due to less inventory? Not really:
NSDCC April Listings: 378
NSDCC May Listings: 371
But about the same percentage of buyers paid over list price:
NSDCC Detached-Home Sales, % Closed Over List Price
Most sellers and agents are happy just to get 1% to 5% over list.
The big winners who got 20% or more over list:
Most % Over List Price
Is anyone surprised that sales are slowing down?
Not when you consider how fast the pricing went up just between April and May. The average list price jumped $200,000, and median list price increased $100,000 in just one month:
NSDCC Pricing of Monthly Listings
Average List Price, April: $2,396,667
Average List Price, May: $2,596,992 (+8%)
Median List Price, April: $1,799,900
Median List Price, May: $1,900,000 (+6%)
But how we measure the sales prices went up more. The average sales price went up $177,753, and the median sales price went up $166,500 – which is a 9% INCREASE IN ONE MONTH!
NSDCC Pricing of Monthly Sales
Average Sales Price, April: $2,403,962
Average Sales Price, May: $2,581,715 (+7%)
Median Sales Price, April: $1,828,000
Median Sales Price, May: $1,994,500 (+9%)
Percentage Who Paid Over List By Price Range:
Under $1.0M: 89% of all sales
$1.0M – $1.5M: 84%
$1.5M – $2.0M: 72%
$2.0M – $3.0M: 34%
Over $3.0M: 22%
It is natural to have sales decline with rapid price increases. The buyers at the margins can get priced out in a week or two, and then we have others who give up and aren’t going to play this game any more – or not until it becomes more rational.
We could be in for a Frenzy Soft Landing, where fewer sellers get lucky as we coast into the pricing plateau that should be coming later this year.