In August, the real estate market showed signs of a shift to a more balanced market which represented changes for both buyers and sellers.
The market has softened which is good news for buyers. This is for several reasons. There is more inventory on the market than the same time last year. We are not seeing the frenzied buyer activity we saw in the Spring where buyers had to be ready to move as soon as a property came on the market. That has slowed considerably and there has been a decrease in multiple offers and bidding wars. We are seeing contracts with home inspection and appraisal contingencies again.
This shift has been a challenge for sellers who did not make it on the market in June or July. Properties were on the market slightly longer last month allowing buyers more time to consider submitting an offer. The number of days on market increased in August to 18 days – which is 12.5% above the average for August last year, and 20% higher than July of this year. This is largely due to buyers taking a break after the very competitive Spring market. There were also more properties on the market. The total number of active listing increased last month compared with August, 2020. Listing were about 26% above last year with 2,768 active listing in August, 2021.
This market shift is not cause for concern. The market is quite robust. We are seeing a return to more normal market conditions. And smart buyers and sellers will take this shift into account and adjust their approach to buying or selling.
