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Is the Market Cooling?

The market may be shifting and it looks like buyers might see the light at the end of the tunnel. No big changes but there is a sense on the Monterey Peninsula that things are starting to settle. There seem to be less initial offers, properties are taking longer to go into escrow and although we are still seeing aggressive pricing, we've started to see more cancellations and price reductions. Only time will tell but nationwide trends appear to be experiencing the same signals.

Key Findings from this week:

  • Home prices are expected to ease off of summer highs sometime in July or August in a much more typical fashion, creating opportunities for off-season home buyers.

  • New listings slipped 3 percent ahead of the Fourth of July holiday. The dip was a bit larger than was seen last year. Travel and summer vacations may have played a role as people returned to "some kind of normal"

  • On the Monterey Peninsula, we are still down about 40% of inventory compared to last year at this time. Although significant, the gap is starting to shrink. Nationwide, this is the 13th consecutive week of smaller year over year decline,

  • Time on market was just 23 days faster than last year and the gap between this year’s market and last is shrinking as we reach the point in the year when time on market generally begins to lengthen.

All of these are slight adjustments but it does look and feel like things are starting to change. Only time will tell!

Source: week of July 3, 2021


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