On a year-over-year basis, pending sales are down 35.4% and closed sales are down 37%. However, this can’t be attributed to low inventory alone because the number of homes for sale is actually up 9.7% over last year. There are three drivers causing home sales to slow down. First, prices are up significantly; the huge appreciation the market has seen has left many buyers on the sidelines. Second, interest rates are on the rise, which will continue to contribute to the slowdown. Last but not least, there are still many overpriced homes on the market that buyers are not taking seriously.

As of April 30th, 2022, there were 226 guard-gated single-family homes for sale. In order to gain perspective on how much inventory has changed, it’s helpful to look at April 2018, when there were 391 homes for sale. Inventory is 42.2% lower than it was four years ago. This shortage in supply has continued to push prices higher. There were 147 pending sales in April 2018, which is right in between the numbers for March and April of this year. This indicates that demand is about the same as it was in 2018. Finally, there were 82 closed sales in April 2018—26% less than the 111 sales of April 2022.

If you look at the Absorption Rate chart, you’ll see that homes priced between $500,000 and $2,500,000 are enjoying a much stronger seller’s market than homes priced over $2,500,000. We expect to see single-digit appreciation this year, and as always, the properties that show the best will continue to sell the fastest for the highest price.

We recommend renovations to many of our sellers these days because we’ve seen the huge returns it has given them. It’s almost like flipping your own house. However, we understand renovations are not for everyone and are definitely not mandatory. Whether you plan to sell now or later, we’d love to hear your goals and help you get there. Now, if only the wind would stop so everyone can enjoy their swimming pools as the days get hotter!