In a report released on November 21, 2018, the National Association of Realtors described how existing home sales were up 1.4% in October over September after six months of decreases. This seems exciting! But sales are down 5.2% compared to last year (October 2017), and the report includes single-family homes, condos, and co-ops. But what does this mean for buyers and sellers in the housing market now?
Housing Market Conditions: What Are The Trends?
Cash sales are up slightly (3% YOY) and home sales to investors are also up 2%. Yet one of the biggest differences being observed in the housing market is within certain price ranges:
% Change in Sales Since Last Year
|0 – $100K||-10.9%|
|$100 – $250K||-1.9%|
|$250 – $500K||+4.6%|
|$500 – 750K||+0.9%|
|$750K – $1 Million||+7.5%|
|$1 Million +||+6.5%|
- Sales in the lowest price range are down substantially (10.9% YOY for homes under $100K).
- Home sales at the high end ($750K+) are growing the most.
- Mid-range home sales ($250 – $500K) are up slightly, too, at 4.6%.
Home prices are also slightly up over last year — 3.8% — with the median sale price coming in at $255,400.
What Does Housing Market Inventory Look Like Now?
- The total U.S. inventory of homes decreased, going from 1.88 million homes in September 2018 to 1.85 million by October, but it’s an increase from 1.80 million homes a year ago.
- Homes are staying on the market for just longer than a month (33 days), which is just above September 2018 (32 days) and just below last year’s 34 days.
- Almost half of homes listed (46%) were on the market for less than a month.
How Do Home Sales Impact Home Buyers?
If you’re looking to buy a home, the housing market you’re searching in can have a lot of impact a lot on what you end up paying for a home, how hard it is to get an offer accepted by a seller, and how long it takes you to find — and close on — the right home.