Whew, lawd! I'm not entirely sure what happened to the last two months, because all I've been doing is slingin' houses down in the real estate mine. And let me tell you, that mine is drying up, folks (can a mine dry up, I'm going to say yes). So to get caught up, let's cut the jibber jabber and take a jaunt through the April & May home sales numbers from the Knoxville Area Association of Realtors (miner nickname, KAAR). To the charts!
This dotted purple line is the star of this story folks. This purple dotted line went down to 6 months of housing supply in April and 5 MONTHS OF SUPPLY IN MAY. F-I-V-E. A "healthy" market is said to be six months of supply, so we are now in supply deficit. See "Deep Thoughts" for more info on how this is affecting the market (quick take: ain't nobody got a house to buy).
WE DO NOT HAVE ENOUGH OF THESE ACTIVE LISTINGS UP HERE IN THIS CHART.
No, that's not a rocket shooting into space, that's the goshdarn home sales so far for 2016. April saw us surpassing 2007 numbers and we climbed well above those in May. If this keeps up, I'm going to need a bigger chart.
- Sales - My business is the selling houses business and business is GOOD.
- Rates - Still low, still driving buyers into the market.
- Prices: Home sales prices continued their year long correction through April and May.
- Multiple Offer Situations: It's pretty much just a thing now.
- Back-Up Offers: We've started working these bad boys like it's 2006.
- Probably some cool summer song that the kids are jamming to on the lake, but I wouldn't know because I'm working all weekend.
- Inventory - Yeah, I said it. It's gotten TOO low. I never thought I'd say that in 2010, but be careful what you wish for.
- Listings - Did I mention we need more listings? We need more listings.
- Rentals - It's hard out there for a house renter. Inventory is low here too and rents are HIGH.
- Realtor tan (left arm and half face through windshield.). The struggle is real.
- We are coming into our strongest sales months on a super strong note. I expect June numbers to be sky high.
- I called it a seller's market two months ago and now I'd say that's definitely cemented with inventory lower than it's been since probably forever.
- Speaking of low inventory...it's causing multiple offers, back up offers, frustrated buyers, frustrated sellers (yes, their struggle is still real too), and a steep learning curve for all of us agents.
- Speaking of low inventory again...I've heard a theory that one cause for this is sellers who refinanced a few years ago with killer rates and now don't want to move and lose their 2.75% interest rate on that 15 year fixed conventional loan. I don't know if that's true, but the truth IS out there.
- It's hot, we're working hard, and we're doing our best. If you see your REALTOR, why not give them a popcicle? It's too sweaty for hugs right now.
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.