In the real world, strongly influenced by human emotions, prices fell sharply last month, losing 3.5% in the monthly median and 2.5% based on the average price per square foot. However, sales prices are a trailing indicator and these moves reflect the balance in the market in November, when we experienced a clear advantage for buyers. Leading indicators are looking more positive. This probably stems from interest rates being less horrible than they were six weeks ago. Demand is starting to stabilize and showing a few slow recovery signs. With new supply very weak, we are not witnessing a market crash. This is merely a correction, with prices now just a tad lower than a year ago – the monthly average $/SF is down 0.9%.
New supply is still very low, but we will be watching closely for any change in this trend.
Data as of 1-03-23 courtesy of The Cromford Report®