The Capital Core Market Update August 2023:
Active listings have continued their decrease (-5.5%) since last month. These active listings prices adjusted down slightly again (-0.26%) and their days on market increased again (8.64%).
Pending contracts dropped dramatically (-24.09%) from last month’s report. The prices on units under contract trended slightly down, again (-2.98%) and their days on the market jumped trended up to a 40-day average.
Our lagging indicator part of the report, the July 2023 sales when compared with June’s numbers, was off by a lot (-19.18%), sold prices came up a bit (-0.39%), while days on market decreased a day to a 25-day average, and sellers saw an end to their average 100%+ of their asking prices (99.8%).
Our take: The market shrank and softened as a result of continued mortgage rate increases and the return to a traditional seasonal market. We are hopeful for an increase of inventory going into the Fall market but also anticipate buyers putting pressure on sellers to soften their positions on pricing as buyers absorb the burden of 7%+ mortgage rates.