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Realtor.com's Monthly Housing Trends Report showed that buyers are still paying summer prices of upwards of $350,000 when purchasing homes in October and September. Prices are holding strong due to low inventory and low mortgage rates that have contributed to a rush of buyers, though, the report notes that a little relief may be on the way as newly listed homes improved.
"In the fall, we normally see homes sell more slowly and prices pull back from peak levels. But this October, we saw a drop in the time it takes to sell a home even while home prices remain at their summer peak" said Danielle Hale, chief economist for realtor.com. "Drawn in by low mortgage rates and the hope of more space, buyers have stayed in the housing market this fall, keeping prices high and pushing time on the market to unseasonable lows. Although we saw growth in newly listed properties in the Northeast and West this month, we'll need a consistent wave of fresh homes hitting the market in order to better match persistent buyer demand."
According to the report, newly listed homes were down 7.7% in October 2020 compared to last year, however, it marks a significant increase from September when new listings were down 13.8% year-over-year. Western and Northeastern markets are seeing the strongest improvements as more new listings hit the market according to realtor.com. Meanwhile, the Midwest and South remain down year-over-year.
Meanwhile, the report notes that in a normal year, home prices would have dropped 1-4% from the summer's price peak by October, though prices still hung around the summer peak levels. The largest gains in home prices were recorded in the Northeast, West, Midwest and South. Earlier this week, CoreLogic reported that home price appreciation reached a 6-year high in September.