"Inventory keeps going up. Last year we were struck by how much inventory jumped from 2024, and here we are again noting that it’s jumping up even more. We were surprised to see the listings went from 303 to 427 last year. Now we’ve just seen it jump from 427 to 515. In the last two years, that’s 303 to 515 in the same timeframe – the first two months of the year. Is this a trend that will continue or is this a sign that sellers are aware of the advantage of listing early in the year? Each passing month will give us more clarity but regardless, the supply side is way up.
There’s really good news on the demand side but you have to look carefully. At first glance, you see that homes sold is down by 4%. Last year in January and February we saw 112 sales, and this year we had 107 closings in those first two months. However (here’s the big but) – pending homes have jumped by 68%!! That’s huge. At this point last year, there were 75 homes pending sale. This year, it’s 126.
So yes, inventory is up by 21% but to more than offset that, pending sales have jumped by 68%. That’s a huge takeaway and explains why most of our market segment report shows as seller’s markets and our overall market is still registering as a strong seller’s market.
Message for Buyers
With inventory up and days on market slightly longer, buyers have more leverage than they did a year ago. We are seeing stronger negotiation opportunities and more flexibility from sellers. That said, well priced homes are still competitive. Being prepared and decisive creates the advantage.
Message for Sellers
Inventory has increased this year, which means buyers have more options. The homes that are prepared well, priced correctly from day one, and marketed strategically are still performing. In today’s market, positioning is everything. By leading with pricing precision and strong presentation, sellers can still achieve excellent results."
Tupper's Team
REALTORS® at Madison & Company Properties
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