Back in April, our market update blog established some inventory level benchmarks. Inventory levels are of course, the numbers of active listing available for sale on MLS at any given time. We determined the highest and lowest inventory levels MLS has ever seen (High – 62,581 in Nov ’07 and Low – 13,161 in May ’05). From there we concluded that the high inventory level, was the ultimate buyer’s market. This is evidenced by the few buyers that were in the market in Nov ’07 having had an abundance of homes to choose from. Likewise, we also established the lowest inventory as being the ultimate seller’s market. Knowing this, the average of the lowest and highest inventory levels would be a neutral market. Otherwise stated, this would be a market where there is the perfect amount of homes available for sale as compared to the number of buyers buying. In our specific market that number is 37,871 homes available for sale.
In April we saw inventory levels at that time (25,232 home available for sale) put us 1/2 of the way to that ultimate boom market levels of 2005. Let’s take a look at what happened to inventory levels for the three months after our last look. We look at the inventory for the 15th day of each month as the level for that month.
The number of homes available for sale on July 15 of this year was 23,164. Whereas inventory levels did shift slightly when compared to the same months in 2015, these shifts were nominal in relation to our current inventory level’s proximity to all time low inventory levels. Below is a graph that best shows how close we are to the historically lowest inventory mark.
In general, with inventory levels of 23,164, showing significantly below the average number of listings (37,871), the scales are tipping heavily in favor of a seller’s market.