July Home Sales - Record 24.7% - Carpe Diem!

Home sales in the month of July, showed of significant sales gains, marking two consecutive months of gains, reported by the National Association of REALTORS® (NAR).  Total home sales for July (excludes new construction) jumped 24.7% from June to a seasonally adjusted annual rate of 5.86 million growth in home sales versus 2019.  Total home sales for July rose 8.7%, over July last year. July was the first month of positive growth since February 2020. Although June also set a record monthly increase in sales of 20.7% over May, the comparison to June 2019 was still negative.  

The median home price for all housing types in July was $304,100, up 8.5% versus last year’s $280,400. Home prices rose in every region.  July’s national price increase marks 101 straight months of gains. For the first time ever, national median home prices breached the $300,000 level.

The only region that did not show a gain for July was the Northeast, which actually showed a year-over-year decline of 5.9%, even though the median price of a home increase 4% to $317,000.  It should be noted the severity of the pandemic on the East Coast caused Governors to virtually shut down the real estate market in mid-March, April and May.  This shut down of business negatively impacted results for March, April, May, and June, pushed closing forward, which negatively impacted the year-over-year results for the Northeast. July results showed a turnaround of activity and sales closings.

Our experience on the North Fork certainly reflects this – very little business was done in March - May.  However, we have been experiencing a significant bounce-back in the last 2-3 months which has created a bubble in sales. Combine that with high demand for homes on the North Fork by city dwellers, we predict sales increases to continue for the next few months.

This is new territory for all of us.  It’s difficult to say how long this surge in sales will continue.  There are so many unknowns with the COVID-19 virus. So, my best advice is if you’re planning to sell – do it sooner rather than later. “Carpe Diem” – seize the day, seize the moment and benefit from the momentum of the positive results in low level of contagion in the New York area and the current wave of demand.

Source: RIS Media, Record-Setting: Existing-Home Sales Soar 24.7 Percent in July, August 21, 2020.