Key Highlights
- National median home price increased +14.4% y/y to $333,900 in September, largest annual increase of any month according to data from Redfin
- Home sales up +17.6% in September
- Number of new listings up +5.9% in September, biggest increase in new listings since November 2015
- Typical home sold in September went under contract in 29 days, fastest pace on record
September was a whirlwind in the housing industry. New records were set in the following areas, according to Redfin:
- National median home price up +14.4% y/y to $333,900
- Number of home sales increased +17.6%
- Number of new listings increased +5.9%
- Pace of sales came in at 29 days, the fastest pace on record
According to Daryl Fairweather, chief economist with Redfin, “2020 will be known for a lot of things AND a record-breaking year for real estate will certainly be one of its more unexpected legacies…Homebuyers are seeking spacious homes in areas outside big cities to accommodate homeschooling and remote work. That plus low mortgage rates and record-low inventory are fueling historically high price growth and the fastest market in recent history.”
Median home prices nationwide increased +14.4% y/y though metros such as Bridgeport CR (+33.1%), Memphis (+29.7%) and Philadelphia (+23.6%) saw much higher median price increases in September. Even metros with less breathtaking increases such as Hawaii (+5.3%), Milwaukee (+6.1%) and Baton Rouge (+6.2%), saw market increases that would be considered “strong” under any circumstances.
Pending sales in September increased +7.3% m/m and +32.9% y/y. 33.9% of homes sales nationally were sold above list price and 99.4% was the average sale-to-list price of home sales nationally. The pace of sales nationally dwindled to just 29 median days on the market.
The number of homes sold in September increased over last year in all but two major metro areas, Buffalo NY (-6.7%) and Memphis TN (-1.8%). The largest increases in the number of home sales over last year were in Bridgeport CT (+80.25), San Francisco (+48.5%) and County IL (+47.3%).
Additional September highlights, according to Redfin, included:
- Tacoma WA was the fastest market with 50% of all homes pending sale in 6 days for the third consecutive month. Seattle, Indianapolis and Grand Rapids MI tied for second fastest with a median of 7 DOM
- The most competitive market for the second consecutive month was Oakland where 66.5% of homes sold above list. Following Oakland’s lead of homes selling above list came Rochester NY (+60.6%), Tacoma (59.6%), Buffalo NY (57.7%) and San Jose (57.6%).
- Check out these inventory happenings:
- San Francisco increased its inventory by +51% y/y
- New York increased it inventory by +20% y/y
- The biggest declines in the number of active listings happened in Kansas City MO (-52%), Allentown PA (-50.2%) and Salt Lake City (-50%).
Thanks to Redfin.
Also read: Expert Predictions for 20221 from Doug Duncan of Fannie Mae, NAR’s 10 Best Cities for Millennials in 2020, Higher Profits on Fewer Flips
