AUGUST HOUSING REPORT BEATS MULTIPLE RECORDS
Home sales continue hot streak while also notching records for lowest inventory, fastest sales and highest median sales price.
The blistering hot U.S. residential housing market is leaving some homebuyers out in the cold as August set RE/MAX National Housing Report records for lowest inventory as well as highest median sales price. According to the RE/MAX National Housing Report for August, home sales rose 4.3% and marked the third-highest total in the report’s 13-year history covering 53 metro markets. While sales climbed, the number of homes on the market in August plunged 29.6% year-over-year – to an all-time report low.
“The demand for houses is easily eclipsing the available inventory in metro areas across the country. Buyers are moving forward in record numbers, unfazed by inventory challenges and consistently higher prices,” said Adam Contos, CEO of RE/MAX Holdings, Inc.
Contos suggested the continued imbalance between the number of homebuyers and sellers in the market presents unique opportunities for quick sales at or above asking price – a benefit for anyone who wants to move quickly and see the best return on their investment.
“Homeowners in a position to sell are seizing the opportunity – and benefiting from the one-two combination of enthusiastic, competitive buyers and significantly quicker turnaround times,” he added. “In many respects, the current environment presents advantages on both sides of the equation.”
This high-demand, low-supply dynamic drove the Median Sales Price to $290,000, topping the previous report record of $285,000 set just one month ago in July. Additionally, on average, homes spent a mere 41 days on market – down four days from August 2019.
Indicators of this strong buyer interest suggest the demand of the past few months may carry into the fall season. With home being the center of people's lives this year, it’s only natural to anticipate shifts in the market as people reassess the traits most important to them in their next home. This trend appears to be true outside of the U.S. as well. In a survey conducted by Leger on behalf of RE/MAX Canada, 32 percent of Canadians no longer want to live in large urban centers, and instead would opt for rural or suburban communities.
Some highlights of the latest data found in the RE/MAX National Housing Report:
1. August Home Sales Were the Highlight of the Month . Continuing the summer streak of increasing home sales, home sales rose 4.3% in August.
2. The Supply of Homes is at an All-Time Low
The number of homes for sale in August 2020 was down 6.1% from July 2020 and down 29.6% from August 2019. Based on the rate of home sales in August 2020, the Months Supply of Inventory decreased to 1.7 compared to 1.9 in July 2020 and decreased compared to 3.3 in August 2019.
3. Homes are Selling at a Higher Price Point
In August 2020, the median of all 53 metro Median Sales Prices was $290,000, up 1.8% from July 2020, and up 11.5% from August 2019. Thirty metro areas increased year-over-year by double-digit percentages,
If you’re thinking it’s time to search for a new place to call home, you aren’t the only one.