New home listings in the U.S. have increased for the last two weeks, but buyers are snapping properties up almost as quickly.
New listings rose 1% annually in the week ending Nov. 13, according to a report Thursday from Realtor.com. At the same time, homes spent an average of 10 days fewer on the market than they did in the same time period in 2020.
“Last week’s housing data suggests that strong demand continues to fuel home sales activity even as we near the end-of-year holidays, when we typically see fewer buyers and sellers,” George Ratiu, manager of economic research for Realtor.com, said in the report. “While new sellers are bringing more homes to market, marking an unseasonably solid start to November, inventory is still limited and homes are moving faster than in prior years.”
Indeed, active inventory is down 25% year over year, the data showed. The pace at which buyers are snapping up properties is keeping inventory low, even with the uptick in new listings. In addition, the median price of residence was up 8.7% year over year, a growth rate that remained steady for 13 of the past 15 weeks, the report found.
“With the economy growing and real estate prices remaining high, homeowners are ready to move forward with Covid-delayed plans to take advantage of the current market,” Mr. Ratiu continued. “If new sellers continue to enter the market as planned, we’ll likely see a brisk, but relatively healthy, pace of home sales activity in the tail end of 2021.”
About a quarter of 1,300 respondents to a Realtor.com survey said they planned to sell their home in the next year, up from 10% in the spring, according to the results of the survey, released last week.
Meanwhile, Redfin’s Homebuyer Demand Index hit a new record for the week ending Nov. 14, according to a separate report released Thursday by the property portal. The index was up 23% year over year, according to the data, which Redfin has tracked since 2017 and measures the number of tours and other requests made of Redfin agents.
“The economy is recovering strongly and mortgage rates are still near all-time lows. Those two forces combined have caused homebuying demand to hit a record high,” Daryl Fairweather, Redfin’s chief economist, said in the report.