realize that we dedicate a lot of time (and words) on this blog on local real estate statistics, focusing on the stats, trends, and topics that are relevant to homeowners in Sacramento, Placer, and El Dorado Counties. So in this post, we wanted to zoom out of Sacramento and even California and instead examine the most recent national real estate data, looking at how the housing sector is doing as a whole. Of course there are prevalent regional and even local factors that go into determining the values and direction of homes in our neighborhoods, but we shouldn’t be remiss in going from micro to macro.
Across the United States, sales of existing homes (encompassing family homes, townhomes, condos, and co-ops) increased 4.7 percent in September versus August, when sales stagnated a bit. The pace of sales is now 8.8 percent higher than this time in 2014.
The median home price for existing homes climbed to $221,000 through September, a 6.1 percent increase from the same time in 2014. That means we’ve seen price increases for 43 straight months.
Across the U.S., total housing inventory fell to 2.6 percent, or 2.21 million existing homes for sale, by the end of September. That means we have a 4.8-month supply of homes, down from 5.1 months in August. Shrinking inventories are consistent with the yearly trend, with a 3.1 percent decrease in available homes for sale since this time last year.
Days on Market:
As of the end of September, existing homes for sale sat on market for an average of 49 days, an increase from the 47 days it took to sell a home in August. But 49 days is still a significant improvement from the 56 days it took to sell a home as of September 2014. Thirty-eight percent of September’s home sales sat on the market for less than a month.
The sale of foreclosures and short sales held at 7 percent of all home sales through September, level for a third consecutive month. That number is down significantly from September of 2014, when distressed properties made up 10 percent of all sales.
Of all home sales, 6 percent were foreclosures and only 1 percent were short sales. It’s worth noting that those levels of short sales are the lowest we’ve seen since 2008.
When it comes to prices, short sales and foreclosures were still great deals, selling for 19 percent and 17 percent below market value in September, on average.
All-cash sales inched up by 2 percent through the end of September, making up 24 percent of all transactions compared to 22 percent in August. Individual investors paid all cash for 13 percent of all homes closed in September, which hovers near the marks for August (12 percent) and this time last year (14 percent).
Who isn’t buying:
First time buyers and Millennials are still sitting on the sidelines of home ownership. Millennials are generally plagued by high levels of student loans and other debts that keep them from buying. However, the general reluctance to buy a home for other first timers is probably based on fears left over from the recession as well as stagnant wages. In fact, first-time buyers only accounted for 29 percent of all existing homes sales in September, even lower than the 32 percent in August. Add it all up and home ownership levels were still an anemic 63.7 percent as of July 2015, the lowest level since 1967.
Here’s a snapshot of existing home sale data as of September, broken down into region:
The number of existing-home sales rose 8.6 percent in September, which is up 11.8 percent from this time last year. Median prices for existing home sales reached $256,500, which is a 4 percent increase from last year.
The number of existing-home sales rose 2.3 percent in September, which is up 12 percent from this time last year. Median prices for existing home sales reached $174,400, which is a 5.4 percent increase from last year.
The number of existing-home sales rose 3.8 percent in September, which is up 5.7 percent from this time last year. Median prices for existing home sales reached $191.500, which is a 6.2 percent increase from last year.
The number of existing-home sales rose 6.7 percent in September, which is up 9.5 percent from this time last year. Median prices for existing home sales reached $318,100, which is an 8 percent increase from last year.
*All data according to the National Association of Realtors.