October Sales Deviate from the Standard: Temps Went Down, Home Sales Went Up

Nationwide, the economy continues to be aided by home sales activity which is at the highest level since 2006. Throughout the Capital Region, buyer activity remains stronger than usual for this time of year as well. Sales have continued to trend upward, marking six consecutive months of month-over-month gains.

Cooler weather usually brings a cooling to the market – not in 2020. Closed sales increased 15 percent over last fall to 1,469 for the month. Pending sales also increased by more than 10 percent from October 2019 to 1,255 for the month.

The pressure continues on sales pricing with the median sales price for existing homes increased by nearly 20 percent over last October to $230,000. New construction’s median sales price remained hovering around $400,000; an increase of 7 percent over last year with 107 hitting Pending status last month – a 66 percent increase over last October.

Greater Capital Association of REALTORS® president, Tom McGroder of Thomas J. Real Estate, commented on the market, “Multiple offers continue to be a challenge throughout our region. As it’s been a trend for quite some time now, Realtors are well versed in achieving positive results for their buyers and their sellers.” Percent of original list price received at sale rose to 97.3 percent since last year

Though housing supply remained low through October, nearly 5 percent more homes were added to it in a year over year comparison providing 1,642 new listings last month; 225 of them were new construction with days on market for both dropping to 50.

GCAR CEO, Laura Burns, observed that “The days on market falling to less than two months, is possibly attributable to sellers having had months of lock-down time to prepare to list and buyers using that same time to shop lenders and prepare to buy.” Mortgage rates have aided the activity hitting new record lows again in October, offsetting the price increases caused by the low inventory. According to Freddie Mac, the monthly average on a 30-year fixed-rate mortgage in October fell to 2.83 percent.