As we come off of a summer that was replete with immense demand and increasing prices, the real estate market is forming to be the hottest in 10 years according to recent monthly data on inventory and demand on Realtor.com.
Homes that were for sale in the month of September were selling 4% faster than last year regardless of prices continuing to be on the rise.
According to data on Realtor.com, the median age of listings, which indicates the inventory on the market, was projected to be 77 days for September – three days less than what we saw in 2015. Total inventory levels are lower than last year with less than 450,000 new listings being brought on to the market in the month of September.
The median home price has increased by 9% over 2015 as it continues this year’s record setting trend by marking a new high for September.
“House hunters who were shut out this summer because of fierce competition could fare better this fall, with more opportunities to buy and mortgage rates still near all-time lows,” says Jonathan Smoke, realtor.com® chief economist. “But don’t expect bargains—prices haven’t come down from this summer’s record highs. Overall, the fundamental trends we have been seeing all year remain solidly in place as we enter the traditionally slower sales season, and pent-up demand remains substantial as buyers seek to get a home under contract while rates remain so low.”
Lawrence Yun, chief economist at NAR, has shared that the limited supply levels have taken the momentum out of the housing market that we had experienced earlier this year. “Contract activity slackened throughout the country in August except for in the Northeast, where higher inventory totals are giving home shoppers greater options and better success signing a contract,” he said.
Following last month’s decline, Yun expects existing-home sales in 2016 to be around 5.36 million, a 2.1 percent increase from 2015 and the highest annual pace since 2006 (6.48 million). The national median existing-home price growth is anticipated this year to increase around 4 percent.
As mortgage rates are remaining at all time lows coupled with strong buyer demand, the real estate market this fall is a great time to buy and sell.