At the end of Matthew Gardner’s video he states that the housing market continues to outperform, but the pace of price growth is not sustainable and while it has to start tapering off at some point it isn’t quite there yet. Check out the graphs below or watch his video to see what was going on with the real estate market in September 2020.
The theme of this video shows an incredibly hot market that has the potential to turn, because prices have skyrocketed and homes are becoming unaffordable. Another resource for you to look at is the housing affordability index. We get these numbers from the National Association of Realtors, and will continue to update them as they come in.
Matthew Gardner talks about the tight supply of housing and how it is affecting home prices. The median sale price in September was $311,800, which is up by 14.8% compared to a year ago. This is the fastest pace of growth since data started to be collected all the way back in 1968!!
Looking at single family homes annual sales came in at almost 5.9 million, which is up 21.8% and also up 9.7% compared to august of this year. Housing supply is limited with only 1.2 million homes for sale and the months of supply is 2.5 which is another record low. Prices are reflecting massive demand and limited supply with the median sale price being $316,200 which is up 15.2% compared to a year ago. We haven’t seen this pace of of price growth since 2005.
Single family building permits rose by 7.8% to annual rate of 1.12 million units a number we haven’t seen since 2007. The number of developments that have yet to break ground has risen to a value that we haven’t seen since 2018. Hopefully this means more supply down the road. Material, land, and labor, costs are all very high making it difficult for builders to bring homes to market that buyer’s can afford.