September 22, 2020 | 10:25
Here Are The Keys To Your New Fixer Upper!
The quest to move, to buy another home, continued in August. U.S. existing home sales rose for the third straight month, a streak we haven't seen in three years. After two straight months surging over 20%, sales cooled in August, up a respectable 2.4% to a 14-year high of 6.00 mln units, annualized, in-line with expectations. Both single-family homes and condos were snapped up during the month. For those homeowners who are taking advantage of strong demand to sell (such as those who want to downsize to a condo) are doing so at a good time... median prices are up over 11% y/y, the largest increase in roughly seven years. Prices are being pushed up due to this equation .... demand > supply. Demand is strong (think of the continuation of "WFH"), while the number of homes and condos available to be sold shrank for the second straight month. Higher prices are pushing certain homes farther away from first timers. Those who are new to this (first-time homebuyers) accounted for 33% of home sold, down from 34% in July and the smallest share since February. Investors or those who want a second home also saw their share slip to a 2-month low of 14% (fewer and pricier options).
As Fed Chair Powell said in his testimony today, "the housing sector has rebounded".
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