Warm Weather, Hot Market

Historically, the market starts to taper off in the fall, but 2020 continues to make its own history in real estate and all else that matters. Closed sales increased 27 percent from September 2019 to 1,421 for the month. Pending sales were also up 27 percent from September 2019 to 1,371 for the month. Sales forecasts are indicating continued activity in the coming months as the Covid-19 impact continues to shift buyers into the Capital Region.

Inventory levels market-wide decreased 37 percent to 3,930 units. New listings increased by 9 percent from September 2019 to 1,884, 221 of which were new construction which is helpful for the current pressure on available listings.

Prices were up compared to last year at this time. The median sales price for existing single-family homes increased by 14 percent to $244,450. Greater Capital Association of REALTORS® president, Tom McGroder of Thomas J. Real Estate, noted that “Prices are likely to continue to rise as buyer demand outpaces available inventory.” On average, sellers throughout the Capital Region are receiving 98 percent of the original list price; many are obtaining above causing multiple offer situations to continue to challenge buyers entering the market.

Greater Capital Association of REALTORS CEO, Laura Burns, commented, “New construction continues to be a key factor in meeting the demand in our region right now. The drop to 52 days on market shows that the current median price of $398,900 is considered very affordable to many buyers when aided by the continued low mortgage rates.” Freddie Mac reports the current rates are, on average, more than a full percentage point lower than rates over the last five years.

With strong buyer activity in the market and the continued inadequate supply of homes for sale, speedy sales and multiple offers are likely to remain a common occurrence and will keep the housing market hot even when the weather begins to cool.