Summer Home Sales Heating Up

Summer home sales are sizzling.

In fact, they’re now selling faster than at any time since spring 2018, according to a new Zillow analysis.

Potential buyers must act fast, while sellers, who have been treading water in light COVID-19, should bear in mind that buyers aren’t dawdling and consider immediately listing.

In mid-June, the typical home sold in the United States had an offer accepted 22 days after it was placed on the market. Even in late May—the most sluggish point of spring—that figure escalated to 31 days. That was a scant six days lower than at the same point last year.

Meantime, although the price tags on homes have remained relatively unchanged in the grip of the pandemic, in the coming months, a modest pullback seems to be in the cards, Zillow reported.

Month over month, new listings have parachuted 14%, a telltale indication that sellers are recognizing that buyers are more than ready to do business. During the past few weeks, numerous home listings.

"Buyers shopping today might expect to be welcomed by desperate sellers, but they'll instead discover houses selling like hotcakes in the speediest market in recent memory," said Zillow Economist Jeff Tucker.

While the market slowed in April, summer shoppers need to be ready to maintain pace with today’s brisk sales, he added. Whether that tempo will cool after buyers have caught up from planned spring moves or if this lighting pace shows no signs of abating in light of ongoing low interest.

Offers are typically being plucked down and accepted on homes quicker than a year ago in 29 of the 35 largest U.S. metros. In Columbus, homes are moving in just five days; six in Cincinnati and Kansas City and seven in Seattle and Indianapolis. Most recently, the most significant uptick occurred in Pittsburgh. Offers were accepted by sellers 17 days sooner that at the same time a year ago—and 40 days quicker.

Summer seems to be the most bullish time to sell a property, according to a recent analysis by ATTOM Data Solutions. More widely, 11 particular days of the year stand out, including eight within June, three in May. On average, June hovered 9.6% above market value, with May at 8.3%.

“Timing the housing market is far from an exact science. But home sellers who want to get the highest price should aim to complete their deals during the peak house-hunting season in late Spring or early Summer when the most potential buyers are out looking,” said Todd Teta, Chief Product Officer with ATTOM Data Solutions.

That said, with many potential buyers hunkering down due to Coronavirus social distancing or job insecurity, Teta cautioned this year could be an exception. Yet sales price data stretching back nearly a decade reflect that, typically, transactions finalized in May, June, and July net 7% to 10% over market value. On the typical home across the country, that’s approximately $17,000 to $25,000. “Compared to other times of the year, that’s a nice markup.”

On the other hand, New York experienced the slowest market, according to Zillow. There, typically, homes are idling on the market 70 days before a deal’s struck. That’s more than three weeks longer than at this time a year ago. Just behind were Miami, 55 days, and Atlanta, 38.

COVID-19 might not be exclusively behind the recent slowdowns in New York and Miami. Typically, in terms of sales markets, both have been among the slowest. That said, however, the year-over-year 23-day slowdown in the Big Apple tops the country, while Miami’s six-day slowdown lags b

New York and Miami have typically been among the slowest-moving for-sale markets, so the recent slowdown may not be fully attributable to the pandemic. Still, the year-over-year slowdown of 23 days in New York is the biggest in the country, while Miami’s six-day slowdown is third-largest, behind New York and Atlanta.