The supply of new listings continues at a very moderate level – some 5% lower than last year but 5% higher than 2013 which had the quietest first quarter for new listings in the current millennium.
The picture changes, however, when we examine individual price ranges. Supply is fairly low at the entry level and mid range. But listings above $600,000 have been arriving faster than in any year since 2009. There were 64 new listings over $3,000,000 in January 2015, more than twice as many as in January 2014. 64 is a very big number when you consider that we typically see an average of only 8 homes over $3,00,000 sell in a given month. In other words we saw 8 months supply of homes over $3,000,000 arrive in January alone. Another 28 have been added so far in February – another 3.5 months of supply. There is never a shortage of high end luxury homes for sale, but we are rapidly approaching a glut. High end sellers (and their listing agents) are going to need a great deal of patience.