Here's how February 2016 is shaping up:

February Cromford Infographic

  • Residential Resale Contracts Up 8.6%
  • 5% More Inventory for Sale Over $200,000

So far 2016 is looking very similar to 2015 in terms of buyer activity in February.  Contracts in escrow are up 8.6% over last year at this time.  That is conservative considering we started off the year with 15% more contracts in escrow.  The real struggle for buyers will be competing for properties under $150,000.  Supply in this price range is down a whopping 40% from this time last year causing frenzy activity around those properties that are in good condition.  As a result, listings in escrow under $150,000 are down 27%.  Supply for properties available for sale between $150,000 and $200,000 is down 20%,  which is still significant but not as extreme as under $150,000.

Sellers have both good news and bad news.  The good news is that buyer activity is still strong in 2016.  Boomerang buyers, those consumers who have waited the required 4-7 years after short sale or foreclosure to qualify for financing, are keeping demand stable in every price range thus far.  The bad news for sellers is, despite the overall 7.5% decline in supply, the number of competing listings over $200,000 has increased 5% compared to this time last year.  This added competition is keeping annual appreciation more subdued for sellers on the higher end of the spectrum.

--Written by Tina Tamboer-Glatfelter, The Cromford Report

In short, things are looking good for sellers and market appreciation in general. However, this may be a signal of things to come. Buyers and Sellers alike, look to the specifics of the price range in which you're playing and prepare accordingly (buyers under $200K, be patient and tenacious!; sellers know what is coming to market and be intimately familiar with your competition). It's early still and springs is creeping up on us now...

As always, call me with any questions you have or to gain some additional insight. I'm only a call, text or email away!