It is clear by now that a real estate market shift has taken place. We have just come out of a frenzied seller’s market where on average, 90% of properties sold above the list price, which lasted up until mid-April. What precipitated this market shift? First, the announcement of the Fair Housing Plan spooked buyers into the sidelines; secondly and more importantly, the supply of available houses for sale increased substantially after mid-April, giving buyers more choice eliminating the urgency to buy immediately.
As is obvious from the below graph, the ratio of sales to new listings was more ideal for sellers to get top dollar from mid-January to mid-April (mostly under 2.0). After that, a flood of houses came on the market delivering lower sale prices.