Buyers continue to face depleted and
picked-over inventory. Post-pandemic
inventory levels have dramatically
dropped since 2019. The inventory
levels on October 1st are down by
28% compared to last year and by 60%
compared to 2019.

Due to the rapid sale of prime new
listings, the remaining available listings
on the market are typically overpriced
or lack the desired condition and
detailing sought by buyers.

Despite the inventory shortages, the
number of showings in September
decreased merely by 4% compared to
last year and by 10% compared to 2019.

The chart below illustrates the weekly
influx of new listings in comparison
to pending sales. Observe the narrow
gap between new listings and new
pendings in 2023 as opposed to 2022.
Additionally, note how closely the
trend of new pending sales follows
that of new listings. As the number of
new listings surges, pendings swiftly
follow suit. Amid this year’s inventory
shortages, buyers continue to await
the arrival of new listings. As soon as
quality listings arrive, buyers are quick
to secure them.

A large pool of buyers has been actively
looking, yet unsuccessful in their bids for a
new home. The best new listings continue
to sell swiftly, often with multiple offers
and prices exceeding the asking amount.
Over half of the new pending sales in
September were under contract within 10
days or less.

The average Days on Market (DOM) for
new pendings in September stood at 30
days, while the DOM for current active
listings, which have yet to accept an offer,
is 90 days.

Sixty-two percent of the closed sales in
September were finalized at prices at or
above the full asking price. To elaborate,
45% closed above the full asking price,
17% were at the asking price, and 38%
sold for less.

Prices tend to soften in the second half of
the year as both the quality and quantity of
inventory decline.

Comparatively, prices were slightly lower
through June when juxtaposed with the
previous year, but have exhibited an uptick
in the recent months. September’s average
price of $189 per square foot was a 5%
increment compared to last year.

By the year’s end, it is anticipated that the
annual price per square foot for 2023 will
exhibit a 2% increase compared to 2022.