August became yet another record breaking month for the housing market. Tight home supply pushed home prices up 11.4% annually, a new record high, according to CNBC. And keeping up with the previous record, homes sold within 22 days on average. Home sales hit a 14-year high last month and sales of existing homes increased 2.4% to a seasonally adjusted annualized rate of 6 million units. Compared to August 2019, home sales jumped by 10.5%. Regionally, home sales increased across the board, but not at the same rate. Read more to see which areas are selling the most.
“The imbalance of supply and demand will hurt affordability soon. Once that appears it will hinder home ownership rates,” said Lawrence Yun, chief economist for the Realtors.
Tough competition has the market moving very quickly. It took just 22 days to sell a home in August, matching the fastest on record.
Mortgage rates set several record lows in August, which only added to the fierce competition for housing. Low rates also kept the heat on home prices, as they give buyers additional purchasing power.