With Americans spending more time at home, many families are eager to buy a house to make their own and fleeing to the suburbs where they can enjoy more space and work remotely. This demand is driving up prices and making consumers feel they must purchase now or be priced out later.
- 22 is the average number of days on the market in July
- 68% of homes on the market in July sold in less than a month
- 8.5% year over year change in U.S. Median home price of existing home sales
Additionally, homebuyers looking for more space have triggered an increase in the number of sales for large homes. According to Redfin, sales of large homes (3,000-5,000 sq. ft.) were up 21.2% year over year (YoY) in July. On the contrary, medium sized home (1,500-3,000 sq. ft.) sales only increased 10% YoY and small home (300-1,500 sq. ft.) sales increased 2.3% YoY.
The average home size that sold in the 4 weeks ending August 16 was 1,772 sq. feet – 3.7% larger than the average home last year. “Most people would prefer a large home over a small home given the choice,” said Redfin chief economist Daryl Fairweather. “That’s true regardless of what’s happening in the world, although spending more time at home due to the pandemic is encouraging some homebuyers to seek out bigger houses."
Be sure to speak with a Home Loan Advisor to know how much home you can afford.
Sources: National Association of Realtors®, CoreLogic