August’s existing home sales continued its upward trend. This momentum was reported for all four regions, Northeast, Midwest, South and West. Sales increased year-over-year by 10.5% from 2019, on target to hit 6 million transactions, up from 5.43 million reported the prior year.
This gain is expected to continue throughout the rest of 2020 on into early 2021. The buyer pipeline appears to be robust, especially while mortgage rates are at all time lows.
The scarcity factor is also playing into the liquidity within the existing home market. This is reflected in the August median sales of $310,000.
This is up significantly from the $278,800 price reported back in August 2019. Again every area participated in the upswing. The August national price increase represent 102 straight months of year-over-year gains.
The other major factor that is impacting the buying psychology is the shortage of available inventory. At the end of August the National Association of Realtors reported that there were only 1.49 million units available for sale, which represents a slight decrease from July but also 18.6% lower than August of 2019, when there were 1.83 million units for sale. The unsold inventory available right now represents a 3-month supply, which is again down from 3.1 months reported in July.
An interesting statistic according to the National Association of Realtors report is that the properties remained on market an average of 22 days in August. This represents a reduction from August 2019, when from the average property stayed on market 31 days. Another factor is that 69% of the homes sold in August 2020 remained on the market less than 1 month.
Other Factors
- First-time buyers accounted for 33% of sales in August
- All-cash sales represented 18% of all transactions in August, a slight increase from 16% in July
- Distressed sales, foreclosures and short sales accounted for less than 1% of all sales in August
- Freddie Mac reported the average commitment rate for 30-year conventional fixed mortgage fell to 2.94% in August
- Existing-home sales climbed in the Northeast by 13.8%
- Existing home sales increased 1.4% in the Midwest
- Existing home sales increased in the south by .8%
- Existing home sales increased in the West by .8%
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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