Inventory Boost Not Enough to Satisfy Fall House Hunters
October 22, 2021 Homes continue to sell quickly: Eighty-six percent of homes sold in September were on the market for less than a month, according to the National Association of REALTORS latest housing report.
Forty-four percent more home sales are pending than at this time in 2019, according to research from the real estate brokerage Redfin. A tight supply of homes for sale and high buyer demand continue to keep the pace of home sales high. Unsold inventory is at a 2.4-month supply at the current sales price, while housing inventory is down 13% compared to a year ago, according to NAR data.
“Comparing today’s sales and new listings numbers to the 2019 levels helps to reveal the stark shortage of supply we are facing,” says Taylor Marr, Redfin’s deputy chief economist. “The boost of housing supply that came on the market during the summer has already faded away, even as demand tapers off as we expected it to in the fall. Relative to the last ‘typical’ fall of 2019, demand remains steady and strong thanks to increased urgency many buyers have as mortgage rates inch up. Rising rates also make buyers more price sensitive, so homes that are priced right are increasingly likely to receive offers right away.”
NAR Housing Report: Home Sales Jump as Buyers Aim to Beat Rising Rates
Properties typically remained on the market for 17 days in September, down from 21 days a year ago.
About 33% of homes that went under contract had an accepted offer within just one week of being listed on the market, up from 30% a year ago and 20% in 2019, according to Redfin’s data. Forty-five percent of homes sold at above list price, up from 22% in 2019.