Monthly Market Indicators
The housing and stock markets continue to be the leaders in the economy. In August, showings and pending sales remained at strong levels while housing inventory remained limited, continuing the competitive bidding market we have seen in recent months. With the stock indexes at or near record highs as mortgage rates remain near record lows, signs point to a busy fall housing market.
New Listings in the Harrisburg region decreased 29.2 percent to 17. Closed Sales were down 47.8 percent to 12. Inventory levels fell 25.8 percent to 49 units.
Prices continued to gain traction. The Median Sales Price increased 6.6 percent to $242,850. Days on Market was up 23.3 percent to 70 days. Sellers were encouraged as Months Supply of Homes for Sale was down 38.3 percent to 2.6 months.
As we look towards the fall, we normally see housing activity begin to slow a bit as the back-to-school season begins, but this year is far from normal. While uncertainty remains on what effects the upcoming elections and any seasonal resurgence of COVID-19 may have on the financial and housing markets, the healthy housing demand we see today will create significant tailwinds in the near term.
Housing Supply Overview
The housing and stock markets continue to be the leaders in the economy. In August, showings and pending sales remained at strong levels. Housing inventory remained limited in many segments, continuing the competitive bidding we have seen across much of the market in recent months. Nationally, the Commerce Department and U.S. Housing and Urban Development report total housing production is up 22.6% to a seasonally adjusted annual rate of nearly 1.5 million units, the highest rate since February. According to the National Association of Home Builders estimates, lumber prices have surged more than 110% since mid-April, adding approximately $14,000 to the typical new single-family homes. For the 12-month period spanning September 2019 through August 2020, Closed Sales in the Harrisburg region were up 29.5 percent overall.
The overall Median Sales Price was up 4.7 percent to $240,850.
Market-wide, inventory levels were down 34.6 percent. The construction type that lost the least inventory was the Previously Owned segment, where it decreased 34.2 percent. That amounts to 2.8 months supply for Single-Family homes and 3.4 months supply for Condos.