High Home Prices Continue Beyond Summer Peak
October 8, 2020
Home prices have hit a record-high growth of 12.9% over the last year. Yet the higher prices aren’t scaring buyers. Homes are still selling quickly—nearly two weeks faster than they did last year.
The U.S. median home price remained near its summer peak of $350,000 during the first week of October and has shown no signs of cooling, according to realtor.com®’s Weekly Housing Report, reflecting the week ending Oct. 3.
“While buyers would normally begin to hunker down this time of year, we expect to see an unusually high number remain in the market this fall,” says Danielle Hale, realtor.com®’s chief economist. “This gives sellers a rare opportunity to get top dollar for their home outside of the prime selling season, which may be motivating some to stay in the market. However, even with record-breaking prices, we’re not seeing sellers rush into the market with the same eagerness as buyers. Looking forward, a key question is whether this frenzied demand will continue into the spring or if we’ll see more balance between home buyers and sellers.”
Typically, during the fall months, sellers tend to lower their prices to entice a smaller pool of buyers. This year has bucked that trend, realtor.com® notes.
Inventories remain tight. The number of homes on the market has plunged 38% compared to last year. Sellers remain reluctant to list their homes.
Updated: September 17, 2021