It is an understatement to say the U.S. housing market is on fire. According to the carefully followed S&P CoreLogic Case-Shiller Indices, home prices rose 19.7% nationally in July from the same month last year. That was the most rapid rise in nearly three decades.
There are several causes for this. One is that home mortgage rates remain near historic lows, despite recent increases in interest rates. Also, people continue to relocate from large coastal cities like New York and San Francisco because they are expensive. The COVID-19 pandemic has given people the freedom to work from home, which means it is easier for them to find places that best suit their lifestyles.
How hot a housing market can be measured by the number of days homes stay on the market after they are listed. Realtor.com’s September 2021 Monthly Housing Market Trends Report indicates that “The typical home spent 43 days on the market this September, which is 11 days less than last year.” In the top 50 markets by population, the number was only 37 days.
In several markets, the decline of days on market was huge, compared to September 2020. In Miami, the number dropped by 32 days, in Raleigh by 29 days and in Jacksonville by 21 days.
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The city where homes were on the market for the shortest period in September was Raleigh, North Carolina, at 19 days. One reason is that active listings dropped by an extraordinary 51%, so supply contracted sharply.
Raleigh is a relatively expensive market, with homes listed for sale averaging $427,000. The national average is $380,000. It is well above the average price in Cleveland, which is $199,000, but well below the San Jose figure of $1.25 million.
Click here to see where in each state buying a home is most expensive.
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