Another unprecedented year continues to unfold for Warren Real Estate and the real estate industry with its own set of opportunities and challenges. Opportunities for sellers to receive multiple offers and higher sales prices; and challenges for buyers that include a lack of inventory and delayed closings. Through it all Warren Real Estate agents have navigated these times with professionalism and expertise.
Let’s begin by sharing that a lack of inventory caused unprecedented sales prices and bidding wars. Comparing last year’s inventory between April to June to this year, we see a 41% decline. This lack of inventory caused excited buyers to become frustrated and caused some sellers to receive multiple offers and thus higher than expected returns.
Behind these numbers are the stories of the houses that sold for an impressive 10, 15, 20, and even 30% over their list price. Will we see this trend continue? As the contracts written in June and July begin to close, we will see. Nevertheless, agents are reporting a decrease in multiple offers on many properties, the notable exception being lakefront.
The closings we are now seeing are from contracts that were predominantly written during the Spring and early Summer. To date, the time span for listings going from contract to close is nearly 79 days, representing about 2 1/2 days longer than the previous year (just over 11 weeks). This is remarkable given it wasn't long ago that Warren Real Estate was experiencing 45-day closing.
The anticipated relief of increased listing activity in late summer seems to have moderated a bit. July brought on nearly a hundred new residential non-waterfront listings in Tompkins County, on par with last year. If this trend continues, we can expect to see a downtrend in listing activity leading into the fall similar to last year, where the number of new listings declined by 28% from August to September.
This is due to the expert advice that agents give their clients to enter the market with reasonable expectations of value. The higher sales price is reflected in July's average closed sales price, the highest monthly average yet, at $375,358. By contrast, the average listing price for residential properties in Tompkins County in July, dropped by over $70,000 to $281,595.
It is still a good time to buy or sell real estate. Your Warren Real Estate agent knows the real estate landscape. Your agent can help you take advantage of opportunities, and guide you through challenges whether you are buying or selling your home, land, or commercial property. We work hard to be the best in the business.