A new report released by relator.com finds the U.S. housing market took a breather recently. During the first week of November, buyers and sellers focused on current events according to the report. Between the presidential election and a rise in coronavirus cases, buyers and sellers had a reason hesitate according to the report. Even while taking a step back temporarily, the industry remained hot.
New listings were down 12% annually during the week ending in November 7 with sellers avoiding putting their homes on the market. This was worse than the prior week’s decrease of 9%. Even more, it was a significant fall from the week ending in October 24 which saw newly listed homes down only 2% compared to the same time a year ago.
The total number of homes for sale produced a dip too. Total inventory across the country is now 39% below last year’s levels.
The speed at which homes are changing hands and the inclusion of price changes remained constant last week without significant gains, but both metrics continue “to signal a tight market,” the report said.
Buyers are continuing to compete for the limited inventory. The homes that are available are continuing to sell fast. Earlier this month, the average time that a property spent on the market was 13 days faster than in 2019. At the time of the realtor.com report, it marked the seventh consecutive week that homes were selling faster than they did a year ago.
Several weeks in a row recorded listing prices with double-digit growth, up 12.9% over last year. This increase is on a level with the 12.2% growth seen last month, when the median listing price reached $350,000.
Will buyers and sellers jump back into the market after this break? Chief economist at Realtor.com Danielle Hale, predicts the pandemic will continue to shift the way the housing market operates, and will determine how buyers and sellers choose to make their next move.
“With mortgage rates expected to rise on news of a likely vaccine, buyers may have reason to jump back in and find a home sooner rather than later, but sellers may be more inclined to stay on hold. Thus, even as overall activity slows, we may very well see continued price growth and quick sales,” said Hale.
No one can predict with absolute certainty what the U.S. housing market will be in the future, but in Charlotte’s real estate scene there is confidence the market is still on the way up. The population is rapidly growing, demand is high and supply is low.
Some experts in the Charlotte region say the market could stay hot for a couple more years into 2022.