Chronicle Journal: Finance

Realtor.com® Weekly Housing Report: Home Price Growth Hits Two-Year High as Wildfires and Hurricanes Put the Brakes on New Listings

SANTA CLARA, Calif., Sept. 17, 2020 /PRNewswire/ -- The already difficult task of buying a home became even more challenging this week as home price growth hit a two-year high and natural disasters drove the number of homes for sale even lower, according to realtor.com's® Weekly Housing Report for the week ending Sept. 12. Overall, the housing market remains strong but saw a slight tempering last week as wildfires and hurricanes prevented potential sellers across the West and South from listing their homes.

"Today's home buyers face some daunting challenges. Home price growth just set a new high of 11% with no indication of a slowdown and there are nearly 40% fewer homes for sale than this time last year," said Danielle Hale, chief economist for realtor.com.® "Inventory is so low that any disruption, such as this week's wildfires and hurricanes, feels even more stifling for would-be home buyers. Although this year is anything but typical, we expect inventory to follow the usual seasonal pattern of tapering off in the next few weeks, but we don't expect buyer demand to drop off as much as usual. Buyers hoping to take advantage of less competition during the housing off-season will likely be disappointed and could find it even more difficult to find a home."   

Wildfires, Hurricanes and the Labor Day holiday worsened declines in homes for sale

  • The number of new listings hitting the market for the week ending Sept. 12 declined 17% compared to last year, as a result of the natural disasters and Labor Day holiday. There had been some improvement in new listings declines earlier this summer, such as the 11% yearly declines seen in late July and early August. But the combination of natural disasters scaring off sellers and one less work day (Labor Day holiday) resulted in overall fewer sellers putting homes on the market.

  • The total number of homes available for sale is down 39% compared to this time last year. The lack of new listings hitting the market, paired with an incredible number of home buyers, has created a situation where there aren't as many homes as there are buyers.

Strong demand drove home prices 11.1% higher than last year -- a two-year record

  • Buyer demand and lack of supply drove median listing prices up at the fastest rate in two years, 11.1% year-over-year, which is the 18th consecutive week of home price acceleration. Low mortgage rates have helped keep payments relatively affordable and prevented too many buyers from getting priced out.

Quick home sales are today's new normal

  • It currently takes 54 days to sell a home, which is 11 days faster than this time last year. Today's fast-paced market is being fueled by limited inventory and fierce competition from other buyers. Those who want to close, know that they have to make a quick offer which is contributing to fast home sales.

Housing market remains strong but saw a slight weakening due to declines in inventory

  • Realtor.com® tracks the overall strength of the housing market through its proprietary Housing Market Recovery Index, which compares real-time key indicators including trends in number of searches on realtor.com®, median listing prices, the number of newly listed homes, and the time it takes to sell to January 2020, prior to the pandemic.

  • This week, the index was 107.4 points, 1.5 points weaker than last week, but 7.4 points stronger than it was pre-COVID. The weekly decline can be attributed to this week's natural disasters, which weakened market health in the Western and Southern regions of the U.S. by 1.9 and 1.8 points, respectively.

Weekly Metro Data – Week ending 9.12.2020

Metro

Median Listing
Price (YOY change)

Total Listings (YOY change)

Median Days on Market
(YOY change)

Akron, Ohio

7.1%

-52.6%

4 days faster

Albany-Schenectady-Troy, N.Y.

14.2%

-41.5%

18 days faster

Albuquerque, N.M.

22.0%

-50.2%

9 days faster

Allentown-Bethlehem-Easton, Pa.-N.J.

24.8%

-58.7%

31 days faster

Atlanta-Sandy Springs-Roswell, Ga.

10.1%

-44.9%

11 days faster

Augusta-Richmond County, Ga.-S.C.

8.3%

-47.7%

20 days faster

Austin-Round Rock, Texas

14.6%

-47.4%

17 days faster

Bakersfield, Calif.

18.5%

-47.7%

15 days faster

Baltimore-Columbia-Towson, Md.

3.1%

-50.9%

21 days faster

Baton Rouge, La.

13.6%

-34.2%

1 day faster

Birmingham-Hoover, Ala.

8.1%

-37.6%

12 days faster

Boise City, Idaho

10.1%

-64.4%

5 days faster

Boston-Cambridge-Newton, Mass.-N.H.

16.4%

-33.6%

16 days faster

Bridgeport-Stamford-Norwalk, Conn.

0.0%

-25.1%

39 days faster

Buffalo-Cheektowaga-Niagara Falls, N.Y.

15.0%

-43.3%

3 days faster

Cape Coral-Fort Myers, Fla.

12.7%

-31.0%

21 days faster

Charleston-North Charleston, S.C.

16.4%

-39.6%

23 days faster

Charlotte-Concord-Gastonia, N.C.-S.C.

8.8%

-48.2%

14 days faster

Chattanooga, Tenn.-Ga.

13.5%

-48.3%

15 days faster

Chicago-Naperville-Elgin, Ill.-Ind.-Wis.

7.7%

-34.7%

9 days faster

Cincinnati, Ohio-Ky.-Ind.

14.6%

-46.3%

9 days faster

Cleveland-Elyria, Ohio

10.0%

-51.1%

9 days faster

Colorado Springs, Colo.

5.4%

-47.5%

16 days faster

Columbia, S.C.

8.7%

-48.8%

18 days faster

Columbus, Ohio

3.8%

-47.3%

13 days faster

Dallas-Fort Worth-Arlington, Texas

5.2%

-43.3%

11 days faster

Dayton, Ohio

23.5%

-45.8%

10 days faster

Deltona-Daytona Beach-Ormond Beach, Fla.

6.6%

-42.1%

19 days faster

Denver-Aurora-Lakewood, Colo.

5.2%

-39.9%

6 days faster

Des Moines-West Des Moines, Iowa

1.2%

-35.6%

7 days faster

Detroit-Warren-Dearborn, Mich

12.7%

-45.8%

8 days faster

Durham-Chapel Hill, N.C.

11.3%

-42.3%

9 days faster

El Paso, Texas

10.1%

-44.6%

19 days faster

Fresno, Calif.

7.9%

-59.0%

21 days faster

Grand Rapids-Wyoming, Mich

10.3%

-47.0%

1 day slower

Greensboro-High Point, N.C.

13.9%

-48.3%

4 days faster

Greenville-Anderson-Mauldin, S.C.

5.3%

-40.8%

8 days faster

Harrisburg-Carlisle, Pa.

3.8%

-43.8%

18 days faster

Hartford-West Hartford-East Hartford, Conn.

7.5%

-32.0%

20 days faster

Houston-The Woodlands-Sugar Land, Texas

7.8%

-32.2%

7 days faster

Indianapolis-Carmel-Anderson, Ind.

20.9%

-64.0%

6 days faster

Jackson, Miss.

23.6%

-44.8%

12 days faster

Jacksonville, Fla.

3.6%

-41.5%

13 days faster

Kansas City, Mo.-Kan.

13.3%

-50.3%

5 days faster

Knoxville, Tenn.

8.3%

-53.1%

14 days faster

Lakeland-Winter Haven, Fla.

8.2%

-28.4%

7 days faster

Las Vegas-Henderson-Paradise, Nev.

7.8%

-8.2%

10 days faster

Little Rock-North Little Rock-Conway, Ark.

18.5%

-49.5%

16 days faster

Los Angeles-Long Beach-Anaheim, Calif.

17.5%

-29.3%

3 days faster

Louisville/Jefferson County, Ky.-Ind.

3.9%

-48.6%

10 days faster

Madison, Wis.

2.9%

-44.6%

7 days faster

McAllen-Edinburg-Mission, Texas

14.4%

-48.4%

15 days faster

Memphis, Tenn.-Miss.-Ark.

12.3%

-52.0%

15 days faster

Miami-Fort Lauderdale-West Palm Beach, Fla.

2.5%

-13.5%

6 days faster

Milwaukee-Waukesha-West Allis, Wis.

10.0%

-42.9%

4 days faster

Minneapolis-St. Paul-Bloomington, Minn.-Wis.

5.9%

-32.0%

7 days faster

Nashville-Davidson--Murfreesboro--Franklin, Tenn.

7.1%

-39.6%

6 days faster

New Haven-Milford, Conn.

4.1%

-24.8%

25 days faster

New Orleans-Metairie, La.

12.1%

-37.7%

12 days faster

New York-Newark-Jersey City, N.Y.-N.J.-Pa.

13.6%

-11.0%

14 days faster

North Port-Sarasota-Bradenton, Fla.

5.6%

-28.4%

22 days faster

Oklahoma City, Okla.

9.6%

-38.8%

1 day faster

Omaha-Council Bluffs, Neb.-Iowa

10.7%

-44.4%

5 days slower

Orlando-Kissimmee-Sanford, Fla.

1.5%

-18.1%

9 days faster

Oxnard-Thousand Oaks-Ventura, Calif.

11.6%

-45.6%

37 days faster

Palm Bay-Melbourne-Titusville, Fla.

8.7%

-40.5%

6 days faster

Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.

11.8%

-38.4%

20 days faster

Phoenix-Mesa-Scottsdale, Ariz.

9.0%

-40.3%

10 days faster

Pittsburgh, Pa.

24.8%

-34.6%

11 days faster

Portland-South Portland, Maine

11.9%

-48.4%

28 days faster

Portland-Vancouver-Hillsboro, Ore.-Wash.

8.5%

-45.5%

7 days faster

Providence-Warwick, R.I.-Mass.

9.5%

-53.0%

14 days faster

Raleigh, N.C.

5.9%

-43.4%

10 days faster

Richmond, Va.

10.9%

-46.1%

8 days faster

Riverside-San Bernardino-Ontario, Calif.

13.7%

-55.9%

17 days faster

Rochester, N.Y.

7.1%

-39.5%

13 days faster

Sacramento--Roseville--Arden-Arcade, Calif.

10.3%

-51.3%

11 days faster

Salt Lake City, Utah

23.1%

-70.5%

13 days faster

San Antonio-New Braunfels, Texas

6.8%

-46.2%

20 days faster

San Diego-Carlsbad, Calif.

8.8%

-43.0%

6 days faster

San Francisco-Oakland-Hayward, Calif.

11.7%

-14.1%

2 days slower

San Jose-Sunnyvale-Santa Clara, Calif.

5.4%

-25.9%

7 days faster

Scranton--Wilkes-Barre--Hazleton, Pa.

15.8%

-52.8%

28 days faster

Seattle-Tacoma-Bellevue, Wash.

4.5%

-25.2%

3 days faster

Spokane-Spokane Valley, Wash.

17.8%

-46.5%

6 days faster

Springfield, Mass.

21.4%

-46.4%

19 days faster

St. Louis, Mo.-Ill.

10.7%

-38.8%

7 days faster

Stockton-Lodi, Calif.

10.5%

-61.9%

7 days faster

Syracuse, N.Y.

2.6%

-42.0%

1 day slower

Tampa-St. Petersburg-Clearwater, Fla.

7.2%

-42.7%

11 days faster

Toledo, Ohio

12.5%

-42.4%

13 days faster

Tucson, Ariz.

8.2%

-40.7%

9 days faster

Tulsa, Okla.

18.5%

-41.8%

8 days faster

Urban Honolulu, Hawaii

-13.2%

29.0%

3 days slower

Virginia Beach-Norfolk-Newport News, Va.-N.C.

10.0%

-45.5%

21 days faster

Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.

9.2%

-39.3%

16 days faster

Wichita, Kan.

15.0%

-48.0%

12 days faster

Winston-Salem, N.C.

9.1%

-47.0%

15 days faster

Worcester, Mass.-Conn.

11.8%

-54.3%

26 days faster

Youngstown-Warren-Boardman, Ohio-Pa.

5.5%

-56.9%

14 days faster

Link to Weekly Stats Blog Post:
https://www.realtor.com/research/weekly-housing-trends-view-data-week-sep-12-2020/

Link to Index Commentary Blog Post: https://www.realtor.com/research/housing-market-recovery-index-trends-sep-12-data/

Methodology: The Weekly Housing Index leverages a weighted average of realtor.com® search traffic, median list prices, new listings, and median time on market and compares it to the January 2020 market trend, as a baseline for pre-COVID market growth. The overall index is set to 100 in this baseline period. The higher a market's index value, the higher its recovery and vice versa.

About realtor.com®
Realtor.com® makes buying, selling and living in homes easier and more rewarding for everyone. Realtor.com® pioneered the world of digital real estate 20 years ago, and today through its website and mobile apps is a trusted source for the information, tools and professional expertise that help people move confidently through every step of their home journey. Using proprietary data science and machine learning technology, realtor.com® pairs buyers and sellers with local agents in their market, helping take the guesswork out of buying and selling a home. For professionals, realtor.com® is a trusted provider of consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS®. For more information, visit realtor.com®.

Media Contacts: 
Cody Horvat, cody.horvat@move.com

 

Cision View original content:http://www.prnewswire.com/news-releases/realtorcom-weekly-housing-report-home-price-growth-hits-two-year-high-as-wildfires-and-hurricanes-put-the-brakes-on-new-listings-301132884.html

SOURCE realtor.com

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