SANTA CLARA, Calif.,
Oct. 1, 2020 /PRNewswire/
-- September is typically the best time of year to buy a home
because there are usually more homes for sale, less competition
from other buyers, and lower home prices -- but that is not the
case this year, according to realtor.com®'s September
Monthly Housing Trends Report. Instead, a pandemic-fueled buying
spree has led to an unusually competitive fall homebuying season
where typical buyers are paying roughly $20,000 more for a home and face 25% more
competition than at the start of the year.
"Many buyers tend to put their home search on hold after the
start of the school year, but remote learning and the desire for
more space continued to fuel buyer interest in September," said
Danielle Hale, chief economist,
realtor.com®. "Unseasonably high buyer interest coupled
with historically low inventory and favorable mortgage rates are
creating a perfect storm in the housing market. While this is good
news for anyone looking to sell their home, it has created
tremendous competition among buyers."
September is not the best time to buy in 2020
Last year the best time to buy a home was the week of
Sept. 22-28 and if 2020 was
following the same pattern, it would have been Sept. 20-26. During this week, the housing market
has typically cooled down, but this year:
- Listings are down 21% compared to the start of the year.
Typically, there are 17% more homes available in September
than at the start of the year.
- Homes cost about $20,000 more
than expected. Home prices are usually up about 10% in September,
but this year they are up 17% compared to the start of the
year.
- Homes are selling 12 days faster than expected. Homes usually
sell 25% faster than the start of the year, but in 2020 they sold
39% faster.
- There are 25% more buyers in the market compared to the start
of the year. Usually, there are only 9% more buyers in the market
compared to the start of the year.
Homes sold faster in September than August for the first time
since 2016
- The typical home sold in 54 days in September, 12 days faster
than the same time last year, and three days faster than last
month.
- In the 50 largest U.S. metros, the typical home sold in 44 days
in September, 10 days faster than last year.
- Properties in the Northeast now typically spend 13 fewer days
on the market than last year, followed by those in the South (11
days faster), the Midwest (9 days faster), and the West (7 days
faster).
Buyers face high home prices everywhere
- All 50 of the nation's largest metros saw increasing home
prices compared to last year.
- Among those, prices are increasing the most in the Northeast
which is seeing an average price acceleration of 12.8% over last
year, compared to 10.9% in Midwestern metros, 8.6% in Western
metros and 7.2% in Southern metros.
- The metros seeing the highest year-over-year price growth
are:
-
- Cincinnati, Ohio-Ky.-Ind.
(+16.9%);
- Boston-Cambridge-Newton,
Mass.-N.H (+16.4%); and
- Philadelphia-Camden-Wilmington, Pa-N.J.-Del.-Md. (+15.6%).
Buyers have limited number of homes to choose from
- The number of newly listed homes on the market in September
decreased by 13.8% compared to last year, even more significant
than the 11.8% loss in August.
- None of the largest 50 metros saw an increase in the number of
homes on the market compared to last year and most (35 out of 50)
saw greater inventory declines than in August.
Metros With the Largest Increases in Home Prices
Metro
|
Median Listing
Price YoY
|
Median Listing
Price
|
Median Days on
Market Y-Y
|
Median Days on
Market
|
New Listing Count
YoY
|
Active Listing
Count YoY
|
Cincinnati,
Ohio-Ky.-Ind.
|
16.9%
|
$318,000
|
-11
|
39
|
-23.1%
|
-46.6%
|
Boston-Cambridge-Newton, Mass.-N.H.
|
16.4%
|
$677,000
|
-18
|
34
|
-3.3%
|
-33.4%
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
15.6%
|
$344,000
|
-20
|
43
|
-0.5%
|
-42.6%
|
Indianapolis-Carmel-Anderson, Ind.
|
15.2%
|
$286,000
|
-10
|
46
|
-16.8%
|
-58.5%
|
Buffalo-Cheektowaga-Niagara Falls, N.Y.
|
15.0%
|
$230,000
|
0
|
43
|
-12.5%
|
-43.3%
|
Austin-Round Rock,
Texas
|
14.8%
|
$408,000
|
-15
|
45
|
-13.8%
|
-47.9%
|
Riverside-San
Bernardino-Ontario, Calif.
|
14.0%
|
$468,000
|
-15
|
41
|
-10.1%
|
-55.6%
|
New
York-Newark-Jersey City, N.Y.-N.J.-Pa.
|
13.5%
|
$625,000
|
-13
|
58
|
-1.1%
|
-10.3%
|
Kansas City,
Mo.-Kan.
|
13.2%
|
$340,000
|
-5
|
49
|
-25.2%
|
-50.3%
|
Detroit-Warren-Dearborn, Mich
|
12.8%
|
$273,000
|
-8
|
38
|
-27.0%
|
-45.9%
|
New Orleans-Metairie,
La.
|
12.3%
|
$325,000
|
-10
|
64
|
-27.8%
|
-38.5%
|
Memphis,
Tenn.-Miss.-Ark.
|
11.3%
|
$262,000
|
-12
|
47
|
-19.5%
|
-52.0%
|
Richmond,
Va.
|
10.9%
|
$355,000
|
-8
|
48
|
-18.2%
|
-46.0%
|
St. Louis,
Mo.-Ill.
|
10.9%
|
$250,000
|
-8
|
58
|
-15.5%
|
-39.1%
|
San
Francisco-Oakland-Hayward, Calif.
|
10.8%
|
$1,037,000
|
3
|
35
|
-0.2%
|
-12.1%
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
10.3%
|
$355,000
|
-11
|
45
|
-25.7%
|
-45.5%
|
Sacramento--Roseville--Arden-Arcade,
Calif.
|
10.1%
|
$544,000
|
-10
|
35
|
-3.4%
|
-51.2%
|
Virginia
Beach-Norfolk-Newport News, Va.-N.C.
|
10.0%
|
$330,000
|
-22
|
39
|
-4.8%
|
-45.5%
|
Providence-Warwick,
R.I.-Mass.
|
9.3%
|
$412,000
|
-14
|
41
|
-16.5%
|
-53.2%
|
Washington-Arlington-Alexandria, DC-Va.-Md.-W.
Va.
|
9.1%
|
$519,000
|
-16
|
28
|
-3.7%
|
-40.4%
|
Cleveland-Elyria,
Ohio
|
9.1%
|
$216,000
|
-10
|
49
|
-14.0%
|
-50.6%
|
Milwaukee-Waukesha-West Allis, Wis.
|
8.8%
|
$326,000
|
-4
|
41
|
-11.5%
|
-42.5%
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
8.3%
|
$349,000
|
-7
|
42
|
-14.3%
|
-34.4%
|
Charlotte-Concord-Gastonia, N.C.-S.C.
|
8.3%
|
$368,000
|
-14
|
42
|
-17.1%
|
-47.9%
|
Las
Vegas-Henderson-Paradise, Nev.
|
7.8%
|
$345,000
|
-10
|
39
|
11.1%
|
-7.8%
|
Hartford-West
Hartford-East Hartford, Conn.
|
7.5%
|
$300,000
|
-22
|
43
|
1.1%
|
-31.8%
|
Oklahoma City,
Okla.
|
7.4%
|
$269,000
|
-2
|
50
|
-12.3%
|
-39.2%
|
Portland-Vancouver-Hillsboro, Ore.-Wash.
|
7.4%
|
$505,000
|
-6
|
44
|
-21.1%
|
-44.8%
|
Tampa-St.
Petersburg-Clearwater, Fla.
|
7.2%
|
$300,000
|
-10
|
50
|
-15.5%
|
-43.5%
|
Nashville-Davidson--Murfreesboro--Franklin,
Tenn.
|
7.2%
|
$400,000
|
-5
|
32
|
-29.8%
|
-40.5%
|
San Diego-Carlsbad,
Calif.
|
7.1%
|
$776,000
|
-7
|
35
|
-5.7%
|
-42.9%
|
Houston-The
Woodlands-Sugar Land, Texas
|
7.0%
|
$332,000
|
-7
|
52
|
-6.5%
|
-32.6%
|
Birmingham-Hoover,
Ala.
|
6.9%
|
$271,000
|
-12
|
52
|
-7.8%
|
-38.1%
|
Rochester,
N.Y.
|
6.7%
|
$223,000
|
-14
|
29
|
-8.3%
|
-40.9%
|
San Antonio-New
Braunfels, Texas
|
6.6%
|
$309,000
|
-15
|
52
|
-13.2%
|
-44.5%
|
Phoenix-Mesa-Scottsdale, Ariz.
|
6.4%
|
$414,000
|
-8
|
37
|
-3.7%
|
-40.9%
|
San
Jose-Sunnyvale-Santa Clara, Calif.
|
5.5%
|
$1,199,000
|
-7
|
35
|
18.8%
|
-24.9%
|
Raleigh,
N.C.
|
5.5%
|
$391,000
|
-9
|
48
|
-22.8%
|
-44.4%
|
Denver-Aurora-Lakewood, Colo.
|
5.0%
|
$522,000
|
-7
|
36
|
-16.3%
|
-40.0%
|
Seattle-Tacoma-Bellevue, Wash.
|
4.8%
|
$628,000
|
-8
|
35
|
15.9%
|
-25.9%
|
Columbus,
Ohio
|
4.7%
|
$300,000
|
-13
|
31
|
-12.7%
|
-47.2%
|
Dallas-Fort
Worth-Arlington, Texas
|
4.5%
|
$360,000
|
-10
|
46
|
-18.9%
|
-43.9%
|
Minneapolis-St.
Paul-Bloomington, Minn.-Wis.
|
4.3%
|
$355,000
|
-7
|
36
|
-6.1%
|
-31.9%
|
Jacksonville,
Fla.
|
4.1%
|
$323,000
|
-12
|
59
|
-23.3%
|
-43.0%
|
Baltimore-Columbia-Towson, Md.
|
3.2%
|
$340,000
|
-20
|
35
|
-6.4%
|
-51.5%
|
Louisville/Jefferson
County, Ky.-Ind.
|
2.9%
|
$268,000
|
-11
|
35
|
-26.7%
|
-48.9%
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
2.5%
|
$410,000
|
-6
|
93
|
-5.3%
|
-14.0%
|
Orlando-Kissimmee-Sanford, Fla.
|
1.5%
|
$325,000
|
-8
|
58
|
-6.0%
|
-19.1%
|
Pittsburgh,
Pa.
|
N/A*
|
$250,000
|
-10
|
54
|
-13.8%
|
-35.0%
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
N/A*
|
$995,000
|
N/A*
|
49
|
-11.4%
|
-28.6%
|
*Some data points for Los
Angeles and Pittsburgh have
been excluded due to data quality.
About realtor.com®
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homes easier and more rewarding for everyone.
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Media Contact
Nicole Murphy,
nicole.murphy@move.com
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