That summer trip to the beach might have been the ticket to cool down. With fall just around the corner, real estate agents are finding their industry is still a little too hot.
According to a report by Realtor.com, home prices in August were holding steady at seasonal and historical peaks, and yet homes also sold at a record pace during the month, moving off the market 8 percent faster than a year ago.
Javier Vivas, manager of economic research at realtor.com, pointed out that the median age of property listings on realtor.com in August is 66 days, which is two more days than last month but still six fewer days than this time last year.
“The overall housing market remains deep into shortage mode, even as we reach a seasonal high number of homes for sale.”
According to Vivas, Realtor.com was expecting 500,000 new listings to hit the market by the end of August, the greatest year-over-year increase in new inventory since March 2016.
“This sets up what could be an extended and frustrating fall home-buying season for first-time home buyers, and marks what could be the start of some relief in the mid-to-upper tier.”
Where are the hottest markets? According to Realtor.com, California sets the pace with Vallejo at No. 1, followed by nearby San Jose and San Francisco. In fact, 10 of the list’s 20 metro markets—which typically include a main city and its closest suburbs—are in California.
Making the hot list at No. 4 is Detroit, Mich., followed by Stockton Calif., at No. 5.
Rounding out the Top 10 are Kennewick, Wash.; Fort Wayne, Ind.; Columbus, Ohio; San Diego, Calif.; and Sacramento, Calif.
Low housing inventory means higher prices, which has helped land areas like Detroit on the list. The shortage is hitting even more markets.
According to Realtor.com, nationwide median home prices recently pushed above $250,000 for the first time, and was expected to hit $275,000 — an increase of 9 percent over the past year.