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State of the Real Estate Market September 2013: Towards a Buyer’s Market
Randy Nelson / Movoto / September 3, 2013
As we make our way out of the traditional home buying season of the summer months, the real estate market as a whole appears to be bucking some recent trends, particularly where inventory is involved. According to Movoto Real Estate’s latest State of the Market report, inventory increased in the past month and is continuing an upward trends as we head into the fall, traditionally the slower months for home buying.
While the market typically sees a decrease in inventory at the end of the summer, the number of homes available actually increased by 2,297, or 2.4 percent, from July to the end of August. At the same time, the median price per square foot decreased 1.1 percent from $181 to $179, the first time this year we have seen it go down (the price per square foot had actually stayed flat from June to July).
This decrease is likely due to the growth in available inventory, but could also be a result of increased interest rates and properties in less desirable parts of cities coming on the market. We expect this trend of flat to decreased price per square foot to continue on a month-to-month basis going forward, while prices will likely stay up when compared year-over-year.
As a result of the increased inventory and reduced price per square foot, we feel that the market at this time is moving towards a buyer’s market. Sellers, on the other hand, will be faced with more competition and the prospect of getting less for their property due to the drop—however slight—in per-square-foot value.
How This Report Is Made
In building Movoto’s monthly State of the Real Estate Market report, we look at 38 geographically diverse cities in order to determine average inventory levels and price per square foot. In addition, we further break down this data on a month-over-month and year-over-year basis. The data used comes from each city’s Multiple Listing Service.