In the past 5 years, our peak inventory has come around the July / August timeframe. That streak has been broken as of last month as we continue to navigate this shifting market. The inventory for residential homes as risen from 2 to 2.1 months of inventory based on closed sales. This is a big mental shift for buyers and sellers in the market as we creep closer to a balanced, more healthy and sustainable market in Pierce County.
Since that graph is based on closed sales, it doesn’t provide the most up-to-date information on our market, since homes that have closed went under contract 30 days ago. Let’s take a look at months of inventory based on pending sales, which should give us a better indicator of what is happening in the market right now.
This graph shows that we are slightly above 2.1 months of inventory based on pending sales.
Let’s take an even closer up to date look for the months of inventory month to date, for October... Pierce County months of inventory is currently sitting at 2.3 months of inventory based on pending sales. Our inventory has increased 226%, from 0.7 months of inventory (based on pending sales) to 2.3 in the same timeframe in October 2022.
In this market, nobody has a crystal ball, but we can see there will be more inventory than years past going into the 4th quarter; which can present buyers with more opportunities than they’ve had since 2018.
If you have more questions, feel free to email Dave Jones at email@example.com or contact an Abode agent for more local and up-to-date market analysis.