Region’s Real Estate Market Keeps Up the Pace
While uncertainty remains on what effects the upcoming elections and any seasonal resurgence of COVID-19 may have on the financial and housing markets, the healthy housing demand we see today is expected to create significant tailwinds in the near term.
Pending sales were up 23 percent from August 2019 at 1,470 for the month. Closed sales were nearly the same at 1,389 compared to last year at 1,408, but the directional trend is fluid and ticking up as the market looks to achieve a sales balance in the wake of the months of downtime earlier this year due to COVID-19.
Prices were up compared to last year at this time. The median sales price increased 11 percent to $238,000 while the percent of original list price for existing homes rose to 98 percent since last year with the price of new construction increasing by 12 percent to $414,125 with 51 days on market; a drop of 11 percent over last August.
“Home sales continue to amaze, and there are plenty of buyers in the pipeline ready to enter the market,” said Lawrence Yun, NAR’s chief economist. “Further gains in sales are likely for the remainder of the year, with mortgage rates hovering around 3% and continued job recovery.”
Greater Capital Association of REALTORS® president, Tom McGroder, of Thomas J. Real Estate, observed, “In terms of total homes for sale, achieving market balance has proven difficult for a few years now. Inventory levels market-wide decreased 35 percent last month which creates multiple offer situations and has stepped up price points.” Months’ supply of inventory was down 35 percent to 3.7 months as compared to August 2019.
Laura Burns, CEO of the Greater Capital Association of REALTORS commented “The current market is very dynamic, more sellers and developers are coming into the mix. With more than 2,000 new listings hitting the market last month, strong home sales are expected to continue throughout the region well into the fall.” New listings increased by 12 percent over last August but they’re not remaining on the market for long. With the stock indexes at or near record highs as mortgage rates remain near record lows, signs point to a busy fall housing market.