- Existing home sales in July higher than those pre-pandemic
- Strong buyer demand expected to continue in coming months
- Properties typically on the market for 22 days
The National Association of REALTORS® just published its REALTORS® Confidence Index Survey for August. Take a look at some of the key indicators in this survey that help explain where the market has been recently and, perhaps, where the market might be going in the near future.
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Existing Home Sales Exceeded Pre-Pandemic Levels
Existing home sales jumped to a record +24.7% in July of some 5.86M. This figure of an annualized rate of 5.86M is higher than the pre-pandemic rate of 5.76M. The y/y basis of existing home sales was just -5% lower than last year’s level.
Median home sales prices of existing single-family homes jumped +8.5% in July to $304,100. This increased median home sales price plus the 3.1 months level of home inventory and typical 22 days on the market data point in July speak volumes in terms of buyer demand.
Focusing on DOM statistics for a moment, 63% of properties sold within a month. Only in North Dakota, Alaska, Mississippi and Louisiana did homes sell in longer than one month. The fastest DOM states included Nebraska and Rhode Island in 15 days, Idaho in 17 days, Utah and Indiana in 18 days, Tennessee, Washington and Massachusetts in 19 days, and Arizona and Colorado in 20 days.
Typically, Each Property Generated Three Client Offers
Agents and clients had to be on their toes in more ways than one in July if they wanted to land a sale. Not only did properties sell quickly, an average of 22 days, sold properties also generated more competition among potential buyers. July’s housing market across the country brought in near three offers per property whereas last year, properties generated two offers.
Market conditions in July were strongest in Alaska, Montana, Idaho, Wyoming, Utah, New Mexico, South Dakota, Nebraska, Arkansas, Wisconsin, Georgia, South Carolina, North Carolina, Virginia, West Virginia, Pennsylvania, New York, Connecticut, Rhode Island, Delaware, Massachusetts, New Hampshire, Vermont and Maine. North Dakota’s market conditions were considered the weakest due to significant drops in crude oil prices.
First-Time Buyers Represented 34% of the Market Share
First-time buyers stepped up to the plate in July 2020 to exemplify 34% of the buyers’ market share. Likewise, the REALTORS® Buyer Traffic Index was considered strong in July as the index score hit 71, just one point below the index score of 72 in February 2020. The “comeback” of this index score was lightning fast, just three months, compared to that of the Great Recession’s that took nearly three years.
Thanks to the National Association of REALTORS® Confidence Index Survey.
Also read: Summer Seeing Surge of Buyer Interest on Both Sides of Atlantic, Zillow Now Partnering with Homebuilder D.R. Horton, Podcast: Why The Next 4 Months Could Be the Most Important Months Ever! | Tim and Julie Harris