Median Days on Market (Through June 2022)

The preponderance of red, orange and yellow color means houses are still selling quickly by historical standards. Before the pandemic it was virtually unheard of for so many markets nationwide to experience such a low number of days on the market before selling.

Seeing all this red, orange, and yellow is NOT normal. Homes have been selling extremely fast.

Median Days On Market (Through June 2019)

As a baseline so you can see what an exception the currently 'red' map is, here's what the month of June looked like before the pandemic – back in 2019

This is what a more "normal" June looks like – with a mix of "hot markets" – those in red, orange and yellow showing FEWER days on market, while other markets in pink and purple taking longer to sell.

Median Days On Market – Year over Year (YoY)

Here's where it gets more interesting... Let's look at a COMPARISON of the same Median Days on Market map except now we're looking at the 1-year percentage change.

Remember at the end of June most markets were still the hot colors – the reds and yellows – not on the market a long time before they sold ... well this map shows the PERCENTAGE CHANGE in the median days on market from a year ago.

Even though properties are still selling "quickly" by historical standards, you can see the start of a slowdown... not so much red in this map – but increasing pinks and purples – which means it is taking LONGER this year for properties to sell compared to last year

The "Days on Market" are getting longer.

Price Decrease Count YoY

This map shows the percentage Increase (in pink and purple) in the number of price decreases occurring for last month compared to the same month a year earlier.

Price decreases occur when the selling homeowner and real estate agent agree to lower the list price, typically because the property isn't selling. An increase in the number of price decreases generally signals weakening market conditions.

You can see by the preponderance of the "weak market" pink and purple colors, and the lack of 'hot market' red and yellow colors that this most recent map is very telling.

There is a large increase in the number of properties currently on the market that are experiencing price drops compared to a year ago.

# of Months Inventory

Another indicator we watch is the Number of Months Inventory for sale. The current map is showing mostly red and orange, which means there is less than a 2-month supply of homes available. This extremely low level of inventory has been the primary driver of the strong market we've seen over the past 2 years.

# of Months Inventory (YoY)

When you look at the CHANGE from a year ago, you begin to see a different picture of the market; the number of months inventory is starting to grow, especially in a lot of the previously red hot mountain states.

Inventory is growing and it's affecting different markets differently.

You can see the trend in the mountain states from across the room. See the pink and purple? ... that is warning you of a coming increase in inventory.

Active Listing Count YoY

Another metric we look at are the number of Active Listings on the market and if that number is rising or falling.

An increase in listings can mean sales of existing listings are slowing and/or more sellers are putting their properties up for sale. Either way, it generally means 'for sale' inventories are growing and a slower market could follow. We need to keep a close eye on it.

Here's how things shaped up at the end of June...

Once again, you see more pink and purple taking over the map meaning a significant increase in the number of listings. The 'hot market' reds and yellows have all but disappeared from this map.