Homes in the United States are selling as fast as they do in the spring. This September marked one of the fastest months this year, posting a median days on market (DOM) of 16 days, down from 28 the year prior and 6 days faster than May 2019.
While the weather may be cooling down, the housing market shows no sign of it, leaving industry professionals in the dark when it comes to predicting how markets will move going into the closing months of 2020.
Entry-Level Homes Lead the Way
New Zillow research finds that while all homes are selling faster than usual, entry-level homes (prices ranging from $186,000-260,000) are leading the charge, selling at an median rate of 14 days, 6 days faster than September 2019. Mid-market homes followed closely, selling at a median DOM of 16 days.
Perhaps a surprise to some, the cheapest homes on the market (prices less than $186,000) sold in 18 days, the slowest market besides luxury and larger homes. The consensus seems to be that a lot of these homes are considered “fixer-uppers.” In the wake of a pandemic, younger people and families trying to balance working from home with life would rather not spend time and money renovating.
Real Estate News Roundup: Foreclosures Low, Delinquencies Up; Frenzied Homebuying Persists
The high-speed real estate market we are witnessing—despite the whims of 2020—can be attributed to a few factors. For one, working and schooling at home have made families desperate to find more space. This has led to an uptick in entry and mid-market sales throughout the U.S. Two, record-low mortgage and interest rates have created a lot of opportunities for first-time homeownership, explaining the high turnover of entry-level listings in the market.
On top of that, the pandemic has forced many sellers to use digital means of marketing and showing homes to buyers, such as utilizing 3D home tours. This has allowed for more exposure, faster sales, and more young buyers to enter the market.
The question going forward is: will the market remain like this?
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