With the recent insanity in the stock market dominating headlines, you would think that a level of uncertainty would loom over homebuyers, but realtor.com chief economist, Jonathan Smoke says the opposite is true. Smoke reports that the stock market undulations and seasonal trends may actually give buyers better financial options and more time to make purchase decisions as fall rolls around.
August marks another healthy month for housing as both demand and supply continue to grow. According to realtor.com’s ‘Advance Read of August Trends,’ the national median list price is $233,000, which although remains virtually unchanged from July is actually up 8.0 percent year-over-year, which realtor.com notes is demonstrative of a continued positive trend in home prices.
Seasonal changes bodes well for buyers
Further, median days on market rose 6.0 percent from July to 75 days, but is down 6.0 percent from August 2014, which realtor.com indicates is a sign that the season is naturally shifting to favor buyers as inventory moves more slowly than in spring and summer.
“This year we are seeing inventory continue to grow in August, and while overall demand is strong, the trend in median days on market is suggesting that the market is finding more of a balance,” concluded Smoke. “This bodes well for would-be buyers who have been discouraged by the inability to find a home to buy this spring and summer.”
But what of that stock market insanity?
As mentioned, the stock market grabbed headlines for a short period, and it might seem that it would make homebuyers fearful, but Smoke explains that it could actually benefit them.
“A temporary drop in demand by those negatively affected by stock market instability might be just what strained would-be buyers need to gain the advantage in a market that has given sellers the upper hand so far this year,” said Smoke, adding that postponement by the Fed due to the market correction could extend accessibility of attractively low mortgage rates.
Okay, so where are the hottest markets?
Ranked by number of views per listing on realtor.com and the median age of inventory in each market, in August 2015, the 20 hottest housing markets are:
Wait, isn’t this last month’s list?
Does this list look familiar? You’re right – it’s pretty much the same as last month. Is that a good thing?
Smoke indicates that this reinforces the strength of supply and demand demonstrated by each market on the list.
“Continuing the trend of California domination this year, 11 of the 20 hottest markets this month sit in the Golden State,” observed Smoke. “California’s tight supply and strong economic growth continues to propel its cities to the top of the realtor.com Hotness Index month after month.”