For the first time in nine years, homes sold faster in October than September as low-interest rates continue to unlock pent-up buyer demand.

The post-lockdown homebuying boom has yet to slow down, according to realtor.com’s October housing trends report released on Thursday.

For the first time since 2011, homes sold faster in October than September with median home prices remaining near $350,000.

Danielle Hale

Danielle Hale

“In the fall, we normally see homes sell more slowly and prices pull back from peak levels,” realtor.com Chief Economist Danielle Hale explained in a statement.  “But this October, we saw a drop in the time it takes to sell a home even while home prices remain at their summer peak.”

The home sales continued its frantic pace, with homes selling one day quicker from September (54 days) to October (53 days). Among the nation’s largest 50 metros, the average days on market declined to 45 days with Hartford, Connecticut (-23 days); Virginia Beach, Virginia (-22 days); and San Diego (-20 days) experiencing the largest annual declines.

Robust buyer demand pushed median home prices up 12.2 percent year-over-year to $350,000 — a complete turnaround from typical fall listing price trends (-1.4 percent). On a regional basis, the Northeast led the way in home price growth (+11.4 percent), followed by the West (+10.1 percent), Midwest (+9 percent) and South (+7.3 percent).

However, home price growth has cooled in the nation’s largest 50 markets as buyers begin shifting their sights to smaller, more affordable areas. Growth in these areas cooled from 9.3 percent in September to 8.9 percent in October, a trend Hale expects to continue.

Metros with the largest increase in newly listed homes (Credit: realtor.com)

The number of homes for sale declined a whopping 38.3 percent year-over-year in October, representing a listing shortage of approximately 500,000 homes. The West (+7.2 percent) and Northeast (+4.1 percent) were the only regions to experience an increase in new listings, while homeowners in the South (-13.8 percent) and Midwest (-9.5 percent) are staying on the sidelines.

Among the nation’s 50 largest metros, Nashville (-27.5 percent), Charlotte (-22.9 percent) and Richmond, Virginia (-21.8 percent) experienced the greatest annual decline in new listings. Meanwhile, sellers in San Jose (+30.6 percent), New York City (+28.2 percent) and San Francisco (+25.9 percent) are entering the market at a fever pitch compared to last year.

Drawn in by low mortgage rates and the hope of more space, buyers have stayed in the housing market this fall, keeping prices high and pushing time on market to unseasonable lows,” Hale said. “Although we saw growth in newly listed properties in the Northeast and West this month, we’ll need a consistent wave of fresh homes hitting the market in order to better match persistent buyer demand.”

Email Marian McPherson

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×