Dive Brief:
-
Home sales in September were 3.2% ahead of September 2015 and are on pace to beat 2015 by 4%, according to real estate listing website Redfin’s September home sales report.
-
The median home sales price dipped slightly from August (-1.4%) but is up 4.4% year over year. However, inventory was down 7% last month from September 2015.
-
Homes sold in an average of 46 days last month, with one in five taking only two weeks or less in September compared to one in six selling in the same amount of time in 2015.
Dive Insight:
More modest price growth in September has helped entry-level buyers consider purchasing a home, according to Redfin, but new single-family construction and the freeing up of existing homes by move-up buyers isn’t yet enough to offset the current tight inventory conditions. A report out last week from real estate listing website Zillow echoed Redfin’s findings, reporting a 5.5% year-over-year increase in U.S. home values while inventory dropped 6% during the period.
The various housing market reports from government agencies and real estate websites have all offered the same refrain: New construction is on the rise and existing home sales are growing, too, but it’ll be a challenge to create enough inventory to meet pent-up demand.
Still, the promise of that activity in the pipeline has builders hopeful. The National Association of Home Builders/ Wells Fargo Housing Market Index hit its second-highest level this year in October, falling off of September’s high by two points, to post a score of 63. The NAHB cited low mortgage rates and promising future sales expectations for the next six months.
