The U.S. housing market continues to percolate as low inventory remains a factor throughout the country. However, August data indicates that buyers may have more options compared to this time last year.
“Low mortgage rates have motivated homebuyers to endure this year’s challenging market and now some buyers are starting to see their persistence pay off. This month, new sellers added more affordable entry-level homes to the market compared to last year, while others began adjusting listing prices to better compete with an uptick in inventory,” said Realtor chief economist Danielle Hale.
“It’s still a strong seller’s market, with homes selling quickly at record-high prices. But now a home priced well and in good condition may see two or three bids compared to 10 last year. For sellers not seeing as many offers, it may be worth revisiting pricing strategies as buyers continue searching for homes that fit their budgets.”
More entry-level homes entered the market, with 432,000 new listings included in August, an increase of 18,000 since last year. Virginia Beach, up by 17 percent, Milwaukee, up by 16.7 percent and Tampa, up by 13.7 percent, posted the highest yearly gains in the share of entry-level homes.
New listings increased 5.1 percent year-over-year in August within the 50 biggest markets. The midwestern portion of the country experienced the biggest gains, up 12.5 overall.
Certain cities in Ohio witnessed large jumps, with Cleveland up 21.6 percent and Columbus up by 25.6 percent. 18 of the 50 largest metros posted significant increases over last year in August.
Among the four primary U.S. regions, the highest yearly price increases were in the West, up by 9.3 percent and South, up by 7.4 percent. Florida remains in demand, with Orlando and Tampa gaining 15.4 percent and 20 percent respectively. Meanwhile, Austin, Texas has skyrocketed up by 36 percent since August 2020.
The U.S. median price of $380,000 IS up by 8.6 percent year-over-year. That’s down by 1.8 percent from July, when the average cost hit a record of $385,000. Homes are also being sold at a quicker rate compared to last year. Properties on average stay on the market for 39 days, 17 days fewer than in 2020.