Hey, May! How you doin'? You sure are looking and feeling pretty good. And as much as I hate to think back on colder, less flowery months, it's time to take a look back at the month that was March. What for, you ask? Why to check out the March 2015 Home Sales Report numbers from the Knoxville Area Association of Realtors (chemical element symbol, KAAR). Let's spring right into it (see what I did there)!
Wasn't nothin' lower than months of supply in March, y'all. Take a look at that royal blue dotted line that's taking a nose dive all the way down to March 2006 home inventory levels. That's right, our months of supply (or the number of months it would take all current homes on the market to sell at the current rate of sales) is now down below 8 months. BELOW EIGHT MONTHS. That's the lowest it's been in pretty much forever, or at least in about 9 years. Stay tuned to the wrap up to see how this is affecting the market, because it is DEFINITELY affecting the market.
This chart shows active listings, and while they are still also at a nine year low, they were up in March over February, probably as a seasonal adjustment. It was the start of Spring Selling Season, after all. But wait... if months of supply is DOWN and active listings were UP.... that much mean....
It's a bird! It's a plane! Wait...is that...IT'S THE MARCH CLOSED SALES GOING THROUGH THE ROOF! Holy macaroni, you guys, talk about starting the Spring Selling Season off right! Sales in March 2015 were the highest they've been since 2007, AKA Ye Goode Olde Dayes. And that's the biggest March jump we've seen since 2006, AKA The Really Goode Olde Dayes. So how are all these sales affecting the market? I'll give you one guess and it's starts with a "P" (not pork chops, although they are delicious). Keep reading on down to the break down for the answer.
- Inventory - Greater Knoxville area housing supply is now officially the lowest we've seen in it 9 years.
- Pricing - Here's your big "P." Average and median sales were up all the way across the board in March. I belive the fancy explanation for this is "supply and demand."
- SALES! - Sales continue to be up year over year and month over month. With the activity I'm seeing in the market, I'm not thinking this is a one month thing, either.
- Rates - They're still below 4% and that's what's driving a lot of the above (sales).
- http://drunkjcrew.tumblr.com/ - Seriously, it's so funny.
- Listings - The good homes are selling about as fast as they're going on the market, ususally with multiple offers.
- Rentals - Everybody's trying to find a good rental (because there aren't any).
- Fence Sitting Buyers - Ain't nobody got time for that this spring.
- Movie Franchise Reboots - I'm looking at you, Mad Max #overit
- You guys, this is a HOT market: prices are still good, rates are still low, and lenders are making it easier to borrow. Now if we just had more homes to sell...
- Sellers, are you thinking about selling your house? May I suggest right around NOW to be a good time?The tipping point into a Seller's market could easily come sometime this summer. COULD.
- Investors, why not take advantage of low rates to build a rental inventory? Renters need places to rent. I'm just sayin'.
- Agents, enjoy this market while it lasts. Trust me: I lived through 2008-2012.
All information provided by KAAR (Knoxville Area Association of Realtors). My opnions are just that: opinions. I'm not really an expert in anything, but I do like to write about real estate.