The drop in January, with the uptick in February, followed by another drop in March is much more likely due to inventory availability than to price drops. Some of the other charts may give support to this opinion. With multiple offers on so many properties, that is causing prices to hold steady and even rise in some of the lower price points.
A nearly 20% decrease in days on market certainly illustrates the decline in inventory (see graph below). Not all price ranges have brisk activity but of those that do, many are going pending in just a few days, lowering the overall average.
This graph can be a little misleading. Look at the drop in supply, close to 30% The number of sold units is down compared to the same time last year, but there were definitely buyers out in force. What they are facing is many of them placing offers, but trying for the same properties. One comes out a winner and several overs wait for more homes to come on the market.
And there it is. The true story of why there is such drop in median price, days on market and units sold. Our inventory supply is down 64% from the same time last year, when it still wasn't at what is considered a 'normal level' (4-5 months supply). Investors and first time buyers are our in force, and we are coming into the season where families with children are starting to look for homes in order to be moved in and ready for the next school season.
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