I think the headline is having some fun with me here, but whatever. I’ll allow it.
We’re a little late, but it’s better than never. And, we’ve attached the chart this time, so we’re super excited. Everything’s coming up Milhouse.
The latest NWMLS press release came out a couple weeks ago. Check it out here.
I get asked fairly often about the market; as in, “Paul, what’s going on with the market?” or “Paul, what is going on with prices?” or “Paul, why aren’t we selling more homes?” Here are some quick thoughts also reiterated in the release:
- Inventory across the board is still low. We are still not in a “balanced market.” An aside: I don’t know what “balanced market” really means. If we don’t sell enough homes, we get yelled at for not selling enough homes. If we sell too many homes, we get yelled at for not raising the prices. Perhaps one of you faithful readers will enlighten me, not on what a balanced market means, but what a balanced market feels like. You know, ‘cuz it’s about feelings.
- We did see a bunch of new homes come online recently. And, that’s a good thing. However, I do think a chunk of sellers thought it was time to cash-in and the chorus of “INVENTORY IS UP” rang across the land. Yeah, “up” to 2 months of supply.
- We’re just coming out of a historically slow time of year.
- Prices have risen so fast and so quickly the laws of the universe will demand the madness to slow down a bit. Not stop, mind you, but at least slow down.
- There still aren’t enough new homes being built.
- Prices aren’t going anywhere but up. Sure, we’re seeing some adjustments, but I think that’s about some builders willing to make 25% margins versus 30-35%. A little facetious here, but you know what I’m saying.
- We need to be really sharp right now on prices. We cannot price aspirationally. Price for today and to the needs of your monthly absorption requirements.
Here’s that wonderful, glorious chart…