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Home Buyers Got Half of What They Wanted in August 2019

The Collin County Association of Realtors (CCAR) reports that as interest rates continued to drop in August 2019, homes sales continues to rise—creating a good news/bad news situation for buyers.

The bad news: Limited inventory for buyers.

August 2019 had 8.5% more listings under contract and 13.1% more projected closed sales than August 2018. Yet, there were 3.3% fewer new listings in August 2019 than 2018.

A combination that resulted in -0.7% less inventory for home buyers in August 2019 when compared to the year prior. In addition, it further solidified the current seller’s market, with only 3.4 months supply of homes. A market is considered balanced with six months of inventory.

The good news: The decreased inventory did not result in increased home prices.

On average, after of 50 days on the market, buyers and sellers agreed on a purchase price that was 95.9% of the original listing price in August 2019, resulting in a median sales price of $315,500. A median sales price that, while 1.8% more than the median sales price received in August 2018, continued a decline that began July 2019.

The change in median sales price paired with favorable lending conditions produced a housing affordability index of 113—8.7% higher than August 2018. Indicating that in August 2019, the median household income was 113% of what is necessary to qualify for a median-priced home under prevailing interest rates.

Overall, August’s market data tells an interesting story. Depending on which data point you look at, it is truly a great time to be a seller, or a great time to be a buyer.

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