Home inventory remains at a historically low supply, which has pushed home prices up dramatically and brought sales time down to an average of 53 days. For the week ending September 19, there were 39% less homes on the market in comparison to the year before, according to Realtor.com. Median home prices are advancing by 11.1% year over year and prices have continued to go up for 19 consecutive weeks. Interestingly enough, the metros where listings are down annually the most are Boise City, Idaho, several smaller East coast metros, and three smaller California metros.
“Sellers are more reluctant to list their home given the uncertainty over the economy and the pandemic environment,” Javier Vivas, director of economic research for realtor.com, said in the report. “Buyers on the other hand, especially hungry first timers, remain largely unfazed by the challenges, and are motivated by low mortgage rates and the fear of missing out on the right home.”
“The majority of sellers are also buyers, so even as new listings hit the market, another buyer is also added,” he said.
Demonstrating the appetite of buyers is the speed in which homes are selling.