We use the term "months of supply" in real estate to tell us how much inventory of homes for sale we have on the market. The months of supply is the time it would take for all the current inventory to sell if it all sold at the current rate without new inventory coming on the market. But how to calculate months of supply you ask? Months of supply is the number of houses currently for sale divided by the average number of homes sold per month. Let's look at a few examples.
Geordie Romer's blog
The following is a guest post from Don Hester of NCW Inspections
Heat pumps are very common in North Central Washington towns like Leavenworth because of the need for air conditioning. Heat pumps combined with our lower energy rates can create a very low cost of operation for heating needs during the winter.
2020 was an unexpected and unprecedented year in every way imaginable. No part of our lives or the economy was left unchanged from 2019 and real estate, especially in Leavenworth, was no different. Massive demand led to a huge increase in 2020 Leavenworth home prices.
When we wrote our spring market update for the Leavenworth real estate market, our fear was that inventory might not be able to meet the extremely strong buyer demand. It seemed likely that Leavenworth home prices would climb in the summer of 2020, but without any properties to sell the number of homes sold might come to a halt.
Earlier in the spring we documented the struggles that many condo sellers were having in the Leavenworth real estate market. At that time, buyer demand for condos appeared low and inventory was starting to increase.
Looking back at the first six months of 2020, it looks like demand for condos has returned and inventory is quite low again.
When we wrote our first quarter report back in April we had only been in the first month or so of the coronavirus pandemic and we knew that it would have some unpredictable effects on real estate, both globally and locally.
In early March of 2020 it became apparent that the coronavirus could likely have massive effects on the world economy including real estate markets in the United States. By the end of March, Washington State was under a "Stay Home, Stay Healthy" order from the governor.
Real estate was soon dubbed an "essential service" and limited real estate activities would be allowed with new rules and restrictions.
Leavenworth’s real estate market in the first quarter of 2020 began with the common theme of high buyer demand and low inventory. This is very typical of the Leavenworth area where many sellers take their homes off the market for the winter months and re-list in the spring.
2019 was another strong year for real estate sales in Leavenworth, Washington. High demand and low inventory continue to push both median and average prices higher for single family homes. The number of total home sales is up year-over-year, but has stayed fairly consistent for the past five years.