RE Stats: 1/23-1/30

Has the housing market bottomed out? I believe the short answer is yes and no.

There are two bottoms for housing. The first bottom is for volume and activity, and the second is for prices. Many experts are predicting that the recent low point in home sales activity is likely over.

The Pending Home Sales Index, a forward-looking indicator of home sales based on contract signing improved 2.5% to 76.9 in December. Year-over-year, pending transactions dropped by 33.8%.

The Deputy Chief Economist at Redfin wrote an article about how homebuyers are finally coming off the sidelines. The number of Redfin customers requesting first time home tours has improved 17 percentage points from the November low. Home tours requests are still down 23% compared to a year ago.

In regards to a bottom in home prices, we may still have a ways to go. Housing affordability is worse than it was before the financial crisis. That doesn't mean we're heading for a housing price crash but it does mean a lot of people can't afford a home until prices go lower and/or interest rates drop.

In Mesa County

• There are currently 477 active homes on the market in Mesa County. This is a 5% decrease from 501 last week.

• The average sold price YTD is $381,475 and the median sold price YTD is $362,000.

• There have been 84 price reductions in the last 7 days.

• There have been 74 new listings in the last 7 days.

• There have been 81 pending listings in the last 7 days.

• The average DOM for the active homes is 96.

Last Weeks New Listings

Last Weeks Sold Listings

NATIONAL MARKET UPDATE

New Home Sales headed up 2.3% in December. They’re still down from a year ago but the recent trend has been positive—nationally, sales activity has been rising for the past three months in a row.

More good news: the supply of completed homes has risen rapidly. There is now a 9.0 months’ supply of new homes for sale, a significant increase from the 3.3 months’ supply early in the pandemic. 

Also encouraging, the Pending Home Sales index of signed contracts on existing homes rose for the first time since last May. The NAR observed, “recent declines in rates are clearly helping to stabilize the market.”

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