A surge in homebuilding before the pandemic is now driving growth in new-home sales. A shift to the suburbs and record-low mortgage rates are also contributing factors.
Home prices typically decline this time of year after hitting a seasonal peak in late June or early July. This year, as of the four weeks ending August 9, home prices were up 3.5% month over month.
Just 6% of homes held open houses during their first week on the market in July, down from 16% a year earlier as fears around the coronavirus pandemic persist
There’s more demand—and less supply—for rural and suburban neighborhoods than cities as the pandemic influences homebuyer preferences. Still, prices are up 6.7% in urban areas.