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September 2021 Housing Market Trends Report

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  • The national inventory of active listings declined by 22.2% over last year, while the total inventory of unsold homes, including pending listings, declined by 12.6%. The inventory of active listings is down 52.5% compared to 2019.
  • Newly listed homes are down 3.9% nationally compared to a year ago, and down 3.4% for large metros over the past year. Sellers are still listing at rates 12.6% lower than typical 2017 to 2019 levels. 
  • The September national median listing price for active listings was $380,000, up 8.6% compared to last year and up 20.6% compared to 2019. In large metros, median listing prices grew by 4.1% compared to last year, on average. 
  • Nationally, the typical home spent 43 days on the market in September, down 11 days from the same time last year and down 23 days from 2019.

Realtor.com®’s September housing data release reveals that homes are still selling at a brisk pace and listing prices continue to grow steadily over the previous year. Active listing inventory is historically low but the gap compared to last year continues to shrink. In September, weather-related interruptions in many markets contributed to an overall decline in newly listed homes compared to the previous year. This is the first annual decline in newly listed homes in five months. 

Fresh Listings Will be Limited in What Is Typically the Best Time of Year to Buy a Home

Nationally, the inventory of homes actively for sale in September decreased by 22.2% over the past year, a lower rate of decline compared to the 25.8% drop in August. The smaller decline means the market is heading in an encouraging direction, but the number of homes for sale still remains historically low, and the pace at which the gap is closing has slowed slightly in August, and more notably in September. This decline amounted to 184,000 fewer homes actively for sale on a typical day in September compared to the previous year, and we’ll need to see more growth in new listings in order for active listings to catch up to last year’s level. The total number of unsold homes nationwide—a metric that includes active listings and listings in various stages of the selling process that are not yet sold—is down 12.6% percent from September 2020.

Active Home Listing Count

In September, newly listed homes declined by 3.9% on a year-over-year basis and sellers are still listing at rates 12.6% lower than typical of 2017 to 2019 levels. This is a change in trend from the previous five months when new sellers were listing in greater numbers than the previous year. While newly listed homes in the South and Northeast were impacted by Hurricane Ida in September, uncertainty from resurgent COVID cases, which had an outsized impact on sellers earlier in the pandemic, may also be playing a role in seller hesitancy. If the trend continues into October, consumers may see fewer fresh listings during what is typically the best time of year to buy a home

Newly Listed Homes

The inventory of homes actively for sale in the 50 largest U.S. metros overall decreased by 18.5% over last year in September, a slowdown in the rate of decline compared to last month’s 20.7% decrease. Regionally, the inventory of homes in large southern metros is still showing the largest year-over-year decline (-25.9%) and with newly listed homes in the region down 3.2% compared to last year, the larger inventory crunch in the South may take longer to recover than other regions.

Markets which are seeing the largest year-over-year growth in newly listed homes include Austin (+19.9%), Portland (+16.3%), and Jacksonville (+15.1%). Markets which are still seeing a decline in newly listed homes compared to last year include New Orleans (-51.2%)—which was heavily affected by Hurricane Ida—Hartford (-22.4%), and Miami (-14.5%). Three of the largest 50 metros are now seeing more homes available for sale compared to last year: Washington, D.C. (+17.8%), Milwaukee (+4.1%), and Philadelphia (+1.6%). 

Homes Continue to Sell 11 Days Faster Than Last Year

The typical home spent 43 days on the market this September, which is 11 days less than last year. Homes are still being quickly snapped up as demand remains elevated, but the time a typical listing spends on the market is now showing more typical seasonality compared to last year. While last year the time on market continued to decline until October, this year, time on market in September increased over August, following a more typical seasonal trend.  

In the 50 largest U.S. metros, the typical home spent 37 days on the market, and homes spent 7 days less on the market, on average, compared to last September. Among these 50 largest metros, the time a typical property spends on the market has decreased most in large metros in the South (-12 days), followed by the Midwest and West (-5 days), and Northeast (-2 days). 

Among larger metropolitan areas, homes saw the greatest yearly decline in time spent on market in Miami (-32 days), Raleigh (-29 days) and Jacksonville (-21 days). Five metros saw time on market increase: Washington, D.C. (+7 days), San Diego (+7 days), Philadelphia (+4 days), Buffalo (+2 days) and Baltimore (+2 days). However, time on market in Washington, D.C., Philadelphia, and Baltimore was still lower than more typical rates in 2019, and time on market in San Diego and Buffalo was similar, meaning that while the housing market this fall isn’t quite as hot as last year, homes are still selling faster than in 2019 in all except two of the largest 50 metros.   

Time on Market

Listing Price Growth is Moderating but Still Elevated

The median national home price for active listings remained the same from August through September, at $380,000. The median listing price again grew by 8.6% over last year, the same growth rate as last month. As we noted previously, while median listing price growth is now below double-digits, this trend reflects a change in the mix of inventory available for sale compared to last year, with more small homes available for sale this year. The median listing price for a typical 2,000 square-foot single family home is currently up 17.1% compared to last year. 

Median Home Listing Price

Last month, we reported that the share of homes which have had their prices reduced had increased over the previous year. This trend continued in September, with the share of homes having price reductions increasing by 1.5 percentage points to 17.9%, just slightly higher than August’s share of 17.3%. However, the share of price reductions is still down almost 5 percentage points compared to 2019 and remains lower than any other September in our data history except 2020. In other words, the past two months indicate that sellers are engaging in price adjustments more than last year, potentially allowing for more negotiating room for buyers. This is an improvement over 2020 price reduction trends and a noted improvement over the first half of 2021, but price reductions are still less common than observed this time of year in 2016 to 2019.

Price Reduced Share

Active listing prices in the nation’s largest metros grew by an average of 4.1% compared to last year, slightly higher than last month’s rate of 3.5%. Price growth in the nation’s largest metros has been lower than other areas across the country, but much of this can still be attributed to new inventory bringing relatively smaller homes to the market this year.

Austin (+33.6%), Las Vegas (+24.6%), and Tampa (+20.8%), posted the highest year-over-year median list price growth in September, while Virginia Beach (+6.3 percentage points), Washington, D.C. (+5.6%) and Austin (+5.3 percentage points) saw the greatest increase in their share of price reductions compared to last year. Austin’s higher rate of price-reductions may be an early signal of relief for home shoppers looking to buy in one of the hottest markets in the country. 

September 2021 Regional Statistics (50 Largest Metro Combined Average)

RegionActive Listing Count YoYNew Listing Count YoYMedian Listing Price YoYMedian Days on Market Y-YPrice Reduced Share Y-Y
Midwest-7.1%-1.1%-4.9%-5 days1.6%
Northeast-15.5%-5.4%0.1%-2 days0.9%
South-25.9%-3.2%8.0%-12 days0.8%
West-18.7%-4.7%9.1%-5 days-0.8%

 

September 2021 Housing Overview by Top 50 Largest Metros 

MetroMedian Listing PriceMedian Listing Price YoYActive Listing Count YoYNew Listing Count YoYMedian Days on MarketMedian Days on Market Y-YPrice Reduced SharePrice Reduced Share Y-Y
Atlanta-Sandy Springs-Roswell, Ga.$398,00012.3%-27.9%-0.8%36-918.7%-0.1%
Austin-Round Rock, Texas$546,00033.6%-10.2%19.9%28-1724.5%5.3%
Baltimore-Columbia-Towson, Md.$335,000-1.5%-3.4%1.9%37223.3%4.2%
Birmingham-Hoover, Ala.$271,0000.2%-25.1%-9.0%46-615.1%0.8%
Boston-Cambridge-Newton, Mass.-N.H.$675,000-0.3%-18.7%-5.0%30-414.3%-3.3%
Buffalo-Cheektowaga-Niagara Falls, N.Y.$230,0000.0%-8.2%-7.4%45216.4%-1.0%
Charlotte-Concord-Gastonia, N.C.-S.C.$390,0005.8%-27.3%-2.9%31-1220.9%3.0%
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.$332,000-4.8%-17.7%-7.1%38-420.4%-0.2%
Cincinnati, Ohio-Ky.-Ind.$312,000-1.8%-4.5%-1.7%37-323.7%4.2%
Cleveland-Elyria, Ohio$199,000-7.6%-2.4%-2.7%43-622.5%1.2%
Columbus, Ohio$289,000-3.6%-1.0%3.1%25-624.5%1.0%
Dallas-Fort Worth-Arlington, Texas$396,00010.3%-33.9%-1.6%36-1120.0%-1.1%
Denver-Aurora-Lakewood, Colo.$600,00014.9%-30.2%-5.2%25-1221.6%-2.3%
Detroit-Warren-Dearborn, Mich.$253,000-7.5%-10.6%1.4%30-821.3%2.1%
Hartford-West Hartford-East Hartford, Conn.$337,00012.4%-56.5%-22.4%41-217.7%5.1%
Houston-The Woodlands-Sugar Land, Texas$363,0009.4%-20.1%-0.4%42-1123.5%2.9%
Indianapolis-Carmel-Anderson, Ind.$280,000-2.2%-22.7%-9.4%38-822.9%-0.7%
Jacksonville, Fla.$370,00014.7%-32.6%15.1%38-2122.5%3.9%
Kansas City, Mo.-Kan.$325,000-4.3%-1.7%1.5%43-721.0%0.7%
Las Vegas-Henderson-Paradise, Nev.$430,00024.6%-33.2%-12.1%29-1118.9%-0.3%
Los Angeles-Long Beach-Anaheim, Calif.$968,000-2.8%-21.5%-12.9%48-111.3%-1.8%
Louisville/Jefferson County, Ky.-Ind.$250,000-6.5%-6.0%2.6%30-523.8%3.1%
Memphis, Tenn.-Miss.-Ark.$249,000-4.6%-13.9%8.7%39-918.0%1.2%
Miami-Fort Lauderdale-West Palm Beach, Fla.$463,00013.0%-46.6%-14.5%61-3211.8%-1.4%
Milwaukee-Waukesha-West Allis, Wis.$279,000-14.4%4.1%2.9%37-426.5%4.5%
Minneapolis-St. Paul-Bloomington, Minn.-Wis.$350,000-1.3%-8.3%-3.2%33-319.1%3.6%
Nashville-Davidson–Murfreesboro–Franklin, Tenn.$448,00012.1%-42.5%-5.4%21-1117.2%0.3%
New Orleans-Metairie, La.$340,0004.5%-8.5%-51.2%61-311.2%-9.3%
New York-Newark-Jersey City, N.Y.-N.J.-Pa.$608,000-2.8%-13.6%-12.6%58011.3%-2.2%
Oklahoma City, Okla.$277,0003.3%-20.6%-4.3%42-820.7%0.3%
Orlando-Kissimmee-Sanford, Fla.$380,00016.9%-46.2%-9.4%39-1919.6%-1.8%
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.$322,000-6.4%1.6%1.2%47421.8%1.5%
Phoenix-Mesa-Scottsdale, Ariz.$475,00014.9%-15.0%1.9%32-521.6%1.1%
Pittsburgh, Pa.$230,000-8.0%-11.6%8.3%46-825.8%1.3%
Portland-Vancouver-Hillsboro, Ore.-Wash.$555,00010.0%-17.1%16.3%36-828.9%-0.2%
Providence-Warwick, R.I.-Mass.$429,0003.9%-10.7%-7.3%35-614.2%2.5%
Raleigh, N.C.$427,0009.6%-53.1%-1.0%19-2912.4%-3.5%
Richmond, Va.$350,000-1.4%-19.0%-0.5%42-716.5%0.7%
Riverside-San Bernardino-Ontario, Calif.$540,00015.4%-3.6%-2.7%36-615.9%4.4%
Rochester, N.Y.$217,000-2.5%-22.6%-7.3%22-713.2%-0.7%
Sacramento–Roseville–Arden-Arcade, Calif.$589,0008.3%-0.7%-5.1%32-418.8%3.3%
San Antonio-New Braunfels, Texas$346,00012.0%-25.1%1.1%40-1222.2%0.8%
San Diego-Carlsbad, Calif.$827,0006.5%-0.9%-12.3%42713.4%-0.2%
San Francisco-Oakland-Hayward, Calif.$993,000-4.2%-19.3%-5.3%30-610.4%-4.0%
San Jose-Sunnyvale-Santa Clara, Calif.$1,250,0004.3%-25.4%-1.6%31-411.2%-5.3%
Seattle-Tacoma-Bellevue, Wash.$677,0007.8%-38.5%-12.7%30-613.1%-3.8%
St. Louis, Mo.-Ill.$250,0000.0%-14.9%1.8%47-1120.1%-0.1%
Tampa-St. Petersburg-Clearwater, Fla.$363,00020.8%-38.2%-3.5%37-1323.2%0.2%
Virginia Beach-Norfolk-Newport News, Va.-N.C.$315,000-4.5%-18.4%-9.7%30-916.2%6.3%
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.$510,000-1.8%17.8%10.7%35721.2%5.6%

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Sabrina Speianu, Danielle HaleSabrina Speianu, Danielle HaleDanielle Hale Original Article Appeared at : Source

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