May is a month that traditionally produces strong results in the local Real estate market. I wonder what she has in store for us this year? The MLS data still shows a rather slow production of new listings and the buyer pool seems to be about the same as last year maybe a little less as the rates are creeping up.
Many agents are hoping for more listings to appear, but be careful what you wish for. A few more would be nice but this market is more precariously perched than it may seem. The tight inventory makes it feel like it is a strong seller's market. In reality rising rates are biting into the buyer pool and a blitz of inventory could cause a flat line on pricing. We don't need that either. A continuing erosion in the buyer pool along with continued tight inventory should lead to more modest appreciation which is more healthy than giant gains in home prices.
I wouldn't mind seeing a tad more inventory as finding homes can be a nightmare. But watch the rates. They are still relatively low, but many buyers have been spoiled by a decade of crazy low rates and things are normalizing. Rates at 6% is a normal and typically healthy thing and we should be there in the next 12-18 months.
So hopefully May will bring us a slight perk in the inventory allowing those frustrated buyers a chance to find something. Sellers should be mindful of the potential for a price slowdown and cautious when considering offers. Sometimes the proverbial bird in your hand is really better than two in the bush.
I feel like May will produce roughly the same number of new listings as last year and the pool of buyers will get just a tad thinner. That should lead us closer to the scenario many analysts are predicting, modest price growth of 4-6% fro 2018.
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