After checking in on the monthly report from the Duluth Area Association of REALTORS, it appears the local housing market saw a little bit of a slowdown during the month of August. Right off the top, closed sales in Duluth and the surrounding area dropped 8.7% compared to the same month last year, even despite the median sales price minimally increasing by just 0.5%.
Perhaps part of the reason for the drop off, however, is that supply throughout the DAAR’s coverage area continues to drop, this time falling 10.2% from August 2016 to August 2017. Furthermore, the number of new listings brought to market also didn’t reach last year’s volume either, as 469 new listings came online in August 2016 and just 417 new listings were added to the market last month.
Total sales could also be on the decline in September, as pending sales at the close of August were down a significant 22.4% compared to last year, falling from 294 to 228. The good news for Duluth home buyers, though, is that as alluded to above, home prices are still continuing to hover around the same level, with the median sales price only jumping from $165,000 to $165,900 year-over-year, and the average sales price actually dropping from $197,209 to $192,316.
For home sellers in Duluth, it’s also worth pointing out that homes sold a couple days faster back in August compared to the year prior, and with the fall season now officially here, expect that trend to continue for at least the next 6 to 8 weeks.