Once you’re in the market to buy or sell a home, you’re going to notice every little thing you hear about the housing market.
It could be on the TV, a headline or article online, friends, family, coworkers — everyone has an opinion on how the real estate market is doing. The problem is, most of what you hear is based upon national data, trends, and statistics. Even if it’s “local” insight, it’s often still too broad and general.
Real estate markets are very localized. They vary between towns and cities, and from one neighborhood or price range to the next. But, like many other areas around the country, real estate is booming and the housing market in Green Valley is still a “strong sellers market” due to historically low inventory, short times on market, and low interest rates.
May 2021 Statistics
For the month of May 2021, the median days on market in Green Valley was just 4 days, down from 8 days in April. The median sales price was $260,000. Low inventory continues to keep prices moving upward.
Inventory, the key indicator, remains historically low, with only 55 active listings in Green Valley as of June 1, 2021. The “absorption rate” (supply of homes) is about 2 weeks. In January and February, there was slightly more than a 30 day supply of homes. The absorption rate has not been higher than a 2 month supply of homes May 2020.
Generally, an absorption rate of less than 3-4 months indicates a sellers market; an absorption rate of 5-7 signals a balanced market, and 8-9 months or more indicates a buyers market.
The median sold-to-list price, another key indicator, has held steady at 100 percent in for the past six months, indicting little movement on price. Buyers remain in fierce competition for homes and many sellers are receiving multiple offers, or offers at or above asking price, and many with escalation clauses and/or appraisal contingency waivers.
Meanwhile, mortgage rates dipped back under 3.00 percent in May, with the 30-year fixed rate averaging 2.95 percent on May 27.
Bottom line: Don’t base your mindset or decisions on what you casually hear from day to day, or read in the headlines. Home purchase affordability is still in a historically good place!