It’s still only the first month of the traditional three month hot spring market. If you recall from the article a few weeks ago, inventory should be building all the way until the peak around June.
But what’s happening this year? Inventory actually dropped from the last week, which is incredible for this time of year. Months of inventory is going to come in around 2.4, which is less than half the level of last year.
|Wk 1||Wk 2||Wk 3||Wk 4|
|Sales to New Listings||
|Months of Inventory||
The sales to list isn’t record breaking, but we have to look back at the market between 2001 and 2006 to find similar ratios. Surprisingly enough there’s still quite a bit of headroom there.
On another topic, Mike Grace has written a very interesting article about whether to choose variable or fixed mortgage rates in this environment of measly discounts and ultra-low fixed rates. In the past it’s almost always been better to choose variable, but I wonder if we’re reaching the end of that period. Assuming of course that rates will start going up soon; a scenario that has been trotted out as a given for at least as long as I’ve been following the market and yet just never seems to materialize.