Home sales returned to more historically normal levels in July and August compared to what we saw in the first six months of the year.
For all property types, the sales-to-active listings ratio for August 2019 is 16.7%. By property type, the ratio is 12% for detached homes, 18.4% for townhomes, and 21.2% for apartments.
Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12% for a sustained period, while home prices often experience upward pressure when it surpasses 20% over several months.
With more demand from home buyers, the supply of homes listed for sale isn’t accumulating like earlier in the year. These changes are creating more balanced market conditions.