Here are the updated housing market trends & predictions for 2020 & 2021. Home buying and selling prospects drastically improved in August as economic concerns continued to ease for both buyers and sellers. Significant uncertainty remains for the housing market going into the fall, as the economy faces a long and bumpy recovery in the upcoming months. Nonetheless, real estate is still a hot seller's market and improved selling prospects are a good sign and will need to remain on that path to bring more homes into the market.
Record-low mortgage rates and shortage of inventory has kept the US housing market strong with respect to buyer demand. With unusually high buyer interest this late in the homebuying season, buyers are moving much faster than this time last year to beat out competition and lock in low mortgage rates. The national median listing price on Realtor.com was $350,000, up 10.1 percent year-over-year while prices rose 8.9 percent in larger markets. While rising prices are making sellers rejoice and list more & more homes, the buyers are worried as home prices rose during the lockdown and could rise even further due to heavy buyer competition and a significant shortage of supply.
The new listings are quickly taken out of the market from heavy buyer competition. Therefore, housing units are still in short supply with unsold inventory sitting at a 3.1-month supply at the current sales pace, down from 3.9 months in June and down from the 4.2-month figure recorded in July 2019. This figure is a sign of a strong seller's real estate market. The national inventory has declined by 36.4 percent year-over-year, and inventory in large real estate markets has decreased by 38.1 percent in August.