Improved Supply for Higher-Priced Homes Brings Balance to the Market

 

 

The housing market saw a bit of a shift in October, with sales of higher-priced homes (those over $600,000) helping to balance out slower sales at the lower end. Overall, 2,174 homes were sold in October, a nice bump from September, and 24% higher than the usual trend for the month.

“Housing demand has remained steady as we head into the final quarter of the year, with October sales showing an increase from September,” said Ann-Marie Lurie, Chief Economist at CREB®. “That said, the market would likely have seen even more activity if there were more options for buyers looking for lower-priced homes. While supply has improved compared to last year’s very low levels, most of the new inventory is in the higher price ranges. This has created a more balanced market for those looking at pricier homes, but conditions are still quite competitive in the lower- to mid-priced segments.”

The past six months have seen a steady rise in new listings, helping to increase the overall inventory in the city. By October, there were 4,966 homes available for sale—quite an improvement over the near-record low of 3,205 homes available last year. While inventory levels are now getting closer to historical norms, the makeup of those listings has shifted, with nearly half of all available homes now priced above $600,000.

These supply adjustments are helping the market move away from the tight conditions of earlier this year, but it's still a bit of a seller's market overall. With just 2.3 months of available inventory and a 67% sales-to-new listings ratio, the market is still competitive. However, the months of supply vary quite a bit depending on the price range and type of property. For example, there’s less than two months of supply for detached homes priced under $700,000, while homes priced over $1 million have more than three months of supply. This means price pressures are different depending on what buyers are looking for.

In terms of prices, the residential benchmark price in October was $592,500—up more than 4% from last year, and about 8% higher on average compared to the start of 2023. While prices dipped slightly from September due to seasonal factors, seasonally adjusted prices have remained relatively steady.