Inventory this month is still sitting at 25 active listings in West Savage. In August of 2013 there were only 8 homes available for sale. Sales are still plucking away at a normal rate for the time of year. All the signs are pointing towards the market balancing out. The pendulum that once swung in favor of buyers, and then last year in favor of sellers, is now swinging back towards the mid-point.
Realtors are “talking around the water cooler” about what is suddenly going on with the $200K market. The $200K market (homes priced from $200,000-$299,900) is seeing reduced showing activity from buyers in our local market in recent weeks. This is a curious detail because this is generally a very active price range. Some of the analysts of our market data are suggesting that buyers who normally purchase in that segment are either choosing to rent, or are literally “skipping” the $200’s and buying into the $300’s, stretching themselves to get a house that will carry them further through the years ahead. While it is still too early to substantiate any of this, we will be watching this trend as we head into the fall market. The $200K market is a critical market that impacts sales in the $400K market.
This month, single family inventory in Savage and Scott County (as a whole) has risen, while townhome inventory in both Savage and Scott County has declined. The West Savage absorption rate has declined from 7.14 last month to 6.0 this month. That means if zero new homes come on the market, it will take 6.0 months to sell our existing inventory. (A seller’s market is typically defined as having an absorption rate of 5.0 or less, and a buyer’s market is one with an absorption rate of higher than 5.0.)