As we enter the final month of summer, pending home sales are slowing down. According to Zillow’s Weekly Market Report for the week ending July 25, this is most likely because the market is following seasonal trends. Generally speaking, as children get ready to go back to school, pending home sales tend to drop after a busy summer season. However, this year there are other factors at play, including incredibly low inventory and an active buyer demand.
The Zillow report indicated that the week ending July 25 posted an increase of 16.1 percent in pending sales compared to this time last year, but a decrease of 1.4 percent in the same category compared to just a month ago. The report also indicates that the market is speeding up, with the average days on market now sitting at just 14 days, nine days faster than last year. Other important factors affecting the market include average list price and available inventory. According to Zillow, new listings are down 12.2 percent year over year, while the average list price increased 6 percent year over year.
A recent realtor.comⓇ report points to buyer demand as the driver behind an 8.5 percent increase in home prices for the month of July. According to that report, the national median home price is now $349,000. In short, buyers are ready and willing to get competitive, but a lack of inventory combined with seasonal trends is slowing the market down.