The frenzy in the housing market continued in August as buyer competition remained elevated. Properties that closed in August received an average of three offers, according to the August REALTORS® Confidence Index Survey. The report is based on a survey of about 4,000 REALTORS® about their latest real estate transactions.
Further evidence that the housing market is going strong: Buyer foot traffic to listings remains high. The REALTORS® Buyer Traffic Index increased to 76—any value above 50 means stronger buyer traffic compared to a year ago. All states except North Dakota and Illinois reported higher buyer traffic. North Dakota’s housing market is still being affected by weak oil prices, the report says.
In-person tours continue amid the pandemic. REALTORS® reported conducting an average of four in-person home tours for their clients.
As buyer demand remains strong, homes are selling faster. Sixty-nine percent of listings stayed on the market for less than one month in August (reflecting listing date to contract date).
“With intense competition, buyers have to be better prepared to make an offer, including already getting prequalified by a lender,” writes Scholastica “Gay” Cororaton, a research economist for NAR.
Buyers should also brace for higher home prices. The median price of existing homes increased to $310,600, an 11.4% year-over-year increase, according to NAR. Price appreciation was highest in the South, with a 12.3% annual gain. It was followed by an 11.8% jump in the West, a 10.7% increase in the Midwest, and a 10.4% increase in the Northeast.
Source: “Buyer Competition Heats Up: More Buyer Offers and Client Tours in August 2020,” National Association of REALTORS® Economists’ Outlook blog (Sept. 24, 2020)
