Survey Shows National Homebuyer Demand Is Stronger Than in 2016

In the latest monthly survey by the National Association of Realtors, the data show that homebuying demand continues to surpass supply for September 2017 in many states.

In states such as Illinois, California, Maryland, and Minnesota, supply conditions remain weak where buyer conditions are strong to very strong, per The National Association of Realtors' Economists' Outlook. Texas and Florida still showed strong buying activity despite the effects of Hurricanes Harvey and Irma.

The inventory of existing and new homes for sale stood at 2.21 million in August 2017, which, at the current level of demand (sales), will be exhausted in 4.3 months. Historical data since January 2000 indicates the median price of existing homes tended to appreciate above five percent when months’ supply fell below six months, while home prices fell by at least 10 percent when months’ supply rose to 10 months or more in 2010.

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