Late-Summer Housing Market Unseasonably Hot

A new housing market study shows a summer that has refused to adhere to the typical seasonal trends.

A recent report from Redfin reveals the state of housing as we approach the tail-end of summer. The report focused on the time window of the month leading up to August 9 and covered myriad details.

The highlights of the report focused on factors such as home sale prices, which were shown to be up 10% (year over year) bringing home prices to record high of more than $314,000. This marks the greatest rise in prices in more than six years, and sets a surprise precedence, as prices ascending each month is definitely going against the typical seasonal trend.

Also included in the Redfin report was the impressive rate (46%) of home offers accepted within their first two weeks of being placed on the market. This marks the highest percentage in this niche in more than seven years (since 2012 at least). This percentage statistic, similar to the aforementioned housing prices, is also bucking normal seasonal trends, which routinely have it decreasing this time of year.

Regarding pending home sales, Redfin reported a rise in those (13% year over year). Likewise bucking trends, these sales seem to have stabilized and remained steady since July’s start, when they usually start to peter out. Further statistics revealed that the housing supply continues to get tighter and tighter, with the active inventory of homes for sale decreasing 28% (year over year).

Brynn Rea, a Redfin agent in Washington, remarked on the atypical state of housing and, specifically, how it has been affected by the current state of affairs facing the nation: “With the coronavirus and the presidential election, things have been anything but typical this year. I don’t feel it slowing down at all right now like it usually does when people are typically spending more of their time on vacations and getting ready to go back to school.”