Median listing prices grew at 9.9 percent over last year, another tick up in the pace of increase. Home asking price growth continues to surprise on the high side. Selling prices have not quite kept pace, but are still rising. The combination of eager buyers, low mortgage rates, and dwindling for-sale homes set the stage for further price gains. But the tide could be turning as sellers come back to the market and new construction picks up. This could help price growth move back to a more normal rate of increase.
New listings were down just 6 percent. This is the second post-COVID week of single-digit decline from a year ago. The small number of homes for sale has been a key limiting factor for buyers in the market, so continued recovery in new listings bodes well for home sales in the coming months.
Total inventory was down 36 percent. As mortgage rates notched their eighth record low of the year, buyers were active in the market, scooping up the new listings that came up for sale and driving overall inventory lower. As long as buyer demand remains strong and inventory scarce, expect home price gains to continue. But the combination of prolonged economic weakness plus faster than normal price gains could wear on buyers and eventually cause demand to cool.
Time on market is still 4 days faster than last year. In addition to the sellers’ market pressures, in which homes sell quickly after listing, measured time on market is also dropping as the share of fresh listings rises. While fast-moving homes can create a stressful environment for would-be buyers, who will feel pressure to make quick decisions, a rising share of new listings gives buyers more options to choose from. Typically, the share of fresh listings peaks in early May, but the share is still rising thanks to COVID, a relief for buyers who are in the market later than normal this year.
Source: National Association of Realtors, realtor.com
Ready to Sell in Bucks County?
Before you list your home for sale, call the John McClintock Team at 267‑759‑9518 for no obligation recommendations on pricing and an overview of our comprehensive marketing package that includes, home staging, brokers' open house, virtual tour, video tour and social media sharing.