RE/MAX: ‘Blistering Hot” Housing Market Sets August Records
The “blistering hot” U.S. residential housing market is leaving some homebuyers out in the cold, said RE/MAX, Denver.
The company’s August National Housing Report cited records for lowest inventory as well as highest median sales price. Home sales rose by 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 a record report low.
“The demand for houses is easily eclipsing the available inventory in metro areas across the country,” said Adam Contos, CEO of RE/MAX Holdings Inc. “Buyers are moving forward in record numbers, unfazed by inventory challenges and consistently higher prices.”
Contos said 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,” Contos said. “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.
The report cites three takeaways:
—August Home Sales Were the Highlight of the Month. Leading year-over-year sales percentage increase were Chicago at 20.1%, Boise, Idaho at 15.7%, and Hartford, Conn., at 15.2%.
—Supply of Homes is at a Record Low. Homes for sale in August fell by 6.1% from July 2020 and by 29.6% from a year ago. Based on the rate of home sales in August, the months’ supply of inventory decreased to 1.7 compared to 1.9 in July and decreased compared to 3.3 a year ago.
—Homes are Selling at a Higher Price Point. In August, the median of all 53 metro median sales prices rose to $290,000, up 1.8% from July and 11.5% from a year ago. Thirty metro areas increased year-over-year by double-digit percentages; not a single metro area saw a year-over-year decrease.