The uncertainties caused by the Covid pandemic kept many homeowners from listing their properties this year.
At the same time more buyers than ever started to look for a new home, hoping to take advantage of the lowest interest rates ever.
This created the perfect storm for an unprecedented real estate boom this summer, which completely depleted inventories and gave buyers no option but to pay more than asking price to score one of the few homes listed for sale.
The latest housing stats show that the summer boom may continue …
Inventory at All-Time Lows
The inventory of active listings keeps falling. At the end of August, it was down to 2,748 homes listed for sale. That’s 47% lower than a year ago. As I write this newsletter, I only found 2,526 properties listed for sale in Central Ohio.
Average Sales Price Keeps Rising
In July, we reported a new record. In August, the average sales price was even higher. It has increased by 12.8% in the past 12 months.
Buyers Pay More Than List Price
For the second month in a row, the average sales price exceeded the last list price. Many buyers decided to pay $10,000 or even $20,000 above list price to secure a property.
Appraisals often fall short of the higher contract price. So, buyers have to bring cash to closing to cover the difference between the appraised value and the contract price.
Homes Under $350,000 Sell Quickly
With buyers competing for new listings, many homes sell in less than 2 weeks. This chart shows how long it took to get a contract on a listing in different price ranges.
No End in Sight?
September sales have been very strong, and pending contracts are much higher than a year ago.
The drop in live showing requests we reported a month ago was caused by a data error not by a lack of buyer interest. Here’s the latest chart:
I keep track of the latest housing data for you. Head over to my Covid page at:
August 2020 Housing Stats
Here are the numbers (compared to the same month a year ago):
- Closed Transactions – 3,381 – UP by 4.7%
- Pending Contracts – 4,180 – UP by 14.9%
- Inventory for Sale – 2,748 – DOWN by 47.0%
- New Listings – 3,600 – DOWN by 2.4%
- Days on Market – 22 – DOWN by 18.4%
- Average Sales Price – $279,134 – UP by 12.8%
Download the full report at August 2020 Housing Data.
If you have any thoughts of buying or selling this Fall, click here to schedule your FREE Zoom Consultation. Call or Text me at (614) 975-9650.