27 New listings came on the market in 78732 in May of 2023, exactly the same as April, but much lower than previous years. This is 31% less listings than May 2022, 20% less than May 2021, and less than half the number of new listings of 2018-2020.
It is this decrease in new inventory that is helping to stabilize our market. In fact, we have seen our “months of inventory” metric decrease again to 3.8 – down from 4.3 months in April, 5.2 months in March. This means that at the rate of sale for the last 6 months, it would take us 3.9 months to sell everything that is active right now. In the last 6 months, we have averaged 15.6 sales per month. We currently have 59 active listings. 59/15.6 = 3.78.
To put this in perspective, in March of 2022, we had .3 months of inventory! That was when things were just insane. But in July of 2018, when it was still a great market, even considered a seller’s market, we had 5.3 months of inventory – much higher than right now.
After being stable at 94% the last few months, the average original list price to sales price fell to 92%. Did the values drop? Not in my opinion. But I have seen a huge rise in the number of unethical Realtors “buying the listing” with prices they (should) know the market can’t bear, knowing they will ask for a huge price reduction every two weeks until it sells.
The sold price to current list price ratio has remained stable all year (this compares the sold price to the price it was listed at when it went pending). January was 97%, February and March 98%, April 97%, May 96%.
When we look at the properties that closed in May, the ones that went under contract in 7 days or less sold at an average of 99% of list price (none were reduced so it was original price). Those that went pending in 8-21 days sold for an average of 97.2% of original list price, 22-30 days on market sold for 96% of original list price, in the second month, the ratio drops down to 86.1%! I said it last month, I’ll say it again, it doesn’t pay to sit on the market! Pricing it higher because “you’re not in a hurry” will cost you money.
The number of cash buyers jumped up in May. At 31%, almost a third of the buyers paid cash!
The rental market continues to be strong in 78732. Seven properties leased in May in an average of 12 days on market for an average of $1.38/square foot.
As always, if I can help you buy or sell or just answer any questions about Steiner Ranch or the Steiner Ranch market, don’t hesitate to give me a call at (512) 657-7510 or email me at Elicia@SteinerRanchinfo.com