Tuesday, June 2, 2020 / by Marty Gum
Record Low Inventory and Record High Prices
Record Low Inventory and Record High Prices
This is your http://altosresearch.com/ data for Monday June 1, 2020 with the latest real estate analytics that came in over the weekend for the whole US. The headline for today is that the inventory of available homes for sale right now is at its lowest level ever and home prices have surged to their highest level ever. There are fewer homes on the market now than at any time since recording began. Altos Research was founded in 2006 and we’ve been tracking the US housing market in real time since then. As demand for homes continues to outpace supply of homes for sale, our available inventory keeps shrinking week over week. Normally June is when we reach peak inventory and transaction volume for the year. 2020 started the year, pre-crisis at the fewest homes for sale ever. Each January of course is normally the fewest homes on the market. Because of the sales rate this week, we dropped to only 719,000 single family homes for sale in the whole country. 66,000 new homes got listed this week. The homes that are on the market are moving, and they’re not requiring price cuts. Price reductions in the US is only 23% this week. 23% of the homes on the market have taken a price cut in the last 90 days. Normally that would be 35%. As a result, home prices hit a new all-time high this week. The median home price in the US is now $345,000. It’s 1 and a half percent higher than last year’s peak. The price of the newly listed cohort is climbing in tandem each week. Normally as we roll into June the new listings start backing off a bit. People price to move before the end of the summer. That’s not happening yet. This is obviously good news for home owners - especially those who are in mortgage forbearance right now. Around 4 million Americans are in some stage of not paying or in a plan to not pay if necessary. Since home values are up, that means home equity is up. People are retaining their wealth and that’s a good thing.
This is your http://altosresearch.com/ data for Monday June 1, 2020 with the latest real estate analytics that came in over the weekend for the whole US. The headline for today is that the inventory of available homes for sale right now is at its lowest level ever and home prices have surged to their highest level ever. There are fewer homes on the market now than at any time since recording began. Altos Research was founded in 2006 and we’ve been tracking the US housing market in real time since then. As demand for homes continues to outpace supply of homes for sale, our available inventory keeps shrinking week over week. Normally June is when we reach peak inventory and transaction volume for the year. 2020 started the year, pre-crisis at the fewest homes for sale ever. Each January of course is normally the fewest homes on the market. Because of the sales rate this week, we dropped to only 719,000 single family homes for sale in the whole country. 66,000 new homes got listed this week. The homes that are on the market are moving, and they’re not requiring price cuts. Price reductions in the US is only 23% this week. 23% of the homes on the market have taken a price cut in the last 90 days. Normally that would be 35%. As a result, home prices hit a new all-time high this week. The median home price in the US is now $345,000. It’s 1 and a half percent higher than last year’s peak. The price of the newly listed cohort is climbing in tandem each week. Normally as we roll into June the new listings start backing off a bit. People price to move before the end of the summer. That’s not happening yet. This is obviously good news for home owners - especially those who are in mortgage forbearance right now. Around 4 million Americans are in some stage of not paying or in a plan to not pay if necessary. Since home values are up, that means home equity is up. People are retaining their wealth and that’s a good thing.
