Pending sales were only down -11% in August (compared to August 2019). The average sales price increased +18.8%, a very healthy climb. However, months supply of inventory is way down again, a whopping -39.3%. This stat changed more than any other. There is only a 1.7 month supply of inventory, which is extremely low, and indicates a strong sellers market.
Strong buyer activity has continued into the fall, which is normally the start of the seasonal slowing of the housing market. With stronger buyer activity in the market this year and the continued constrained supply of homes for sale, speedy sales and multiple offers are likely to remain a common occurrence and will keep the housing market hot even when the weather is cooling.
While mortgage rates remain near record lows, The Mortgage Bankers Association reports that lending standards are tightening, which makes it a bit more difficult for some buyers to qualify. At the same time, unemployment remains substantially higher than a year ago due to COVID-19. Despite all this, buyers are out in full force this fall, showing amazing resilience in the middle of a pandemic.
All data from Triad MLS. Report © 2020 ShowingTime.