Could Home Sales Level Off in Fall?
Fall offers a glimmer of hope that home sales will level off.
These days, potential homebuyers don’t BUY homes. They “win” them. Multiple offers being the rule and not the exception to it, buyers are up against a limited number of homes for sale.
According to the National Association of Realtors, buyers continue to quickly pounce on whatever is available, evidenced by the NAR reporting that existing-home sales in September were up 21% year over year. Home prices jumped 14.8% last month as well, averaging $311,800.
So how about later this fall? Realtor.com® Weekly Housing Report reflecting the week ending Oct. 17 shows some relief may be in sight for buyers who have been struggling to find a home to buy. “The number of homes for sale appears to be leveling off, according to realtor.com®. However, researchers are quick to point out that it still very much remains a seller’s market heading into November,” says the report.
Danielle Hale, Realtor.com® chief economist, says, “During a time when the housing market usually slows down, we are once again reminded that 2020 is anything but typical. Going into the last half of October, the median U.S. home for sale is still priced near the year’s peak and is selling almost two weeks faster than last year.” She goes on to say that at the same time, the pace of change has steadied and in some cases, even slowed. “This could be a welcome relief for buyers who have navigated not only a pandemic but also a fiercely competitive 2020 home buying season characterized by double-digit price growth and record low inventory.”
The report also shows that newly listed homes nationwide fell 6% during the week ending Oct. 17, a slight uptick from the previous week. While new listings remain “vastly improved” over earlier in the year, and for the fourth consecutive week they are above the pre-pandemic pace, a stabilizing new listings trend could tempt potential sellers (who often are also buyers) to list their home, according to Realtor. At the same time, homes all over the country are selling anywhere from 8 days to a whopping 43 days faster than a year ago.
Source: NAR | TBWS