Sales in July were either just an off month or are the start of a change in the trend we’ve had for a while.
Since August 2014, the sales number each month has been higher than the sales number for the same month in the previous year. Up to October of 2015 the increase over the previous year was fairly large. From October 2015 through June 2016 it was a much smaller increase.
Last month we saw the first decrease in sales when compared with the same month of the previous year since July 2014.
We have seen this happen before: There were year-over-year increases from December 2011 through October 2013 and then a mix of increases and decreases from November 2013 to July of 2014 (which is when the current streak of increases began). So this may just be a period of adjustment like that last one. We’ll know more as we monitor the sales over the next 6-12 months.
One very likely possibility for this trend change is that, due to the low levels of inventory (properties for sale) which we have been experiencing for a while now, the market is unable to keep up with actual buyer demand. It may also be due to low inventory accompanied by prices reaching a level that is slowing the market down. Time will tell so keep an eye on my monthly newsletters to see what happens in the coming months.
Here are the graphs for July:
(Information for the charts was taken from PRO/Suncoast MLS from Jan 2007 thru May 2011 & from the MFRMLS for May 2011 thru July 2016. This information may or may not include all listed expired, withdrawn, pending or sold properties of one or more members of the My Florida Regional Multiple Listing Service.)