With fewer homes for sale than ever, listings close at lightning speed

Housing inventory fell to another all-time low in October, causing rapid closings and rising prices that month, according to Remax.

October's average listing-to-sale time was the shortest it's been in the 13 years of the Remax National Housing Report. Homes spent 38 days on market in October, down from 39 in September and 49 the year prior. Among the 52 largest housing markets, Cincinnati had the fewest days at 18, followed by Boise, Idaho, at 20 and Nashville, Tenn., at 21. Miami finished at the other end of the spectrum with an 89 day average, trailed by 86 days in Des Moines, Iowa, and 74 days in New York.

The number of properties for sale plummeted 32.5% year-over-year and 7.6% from September to another new nadir since Remax started its report. National supply decreased to 1.7 months in October from 1.9 month-over-month and 3.6 months the year prior. Boise, Idaho, continues to have the lowest inventory at 0.5 months, followed by Albuquerque, N.M., and Manchester, N.H., at 0.7 months. A 6-month supply defines market equilibrium.

"Buyers are ready to act as soon as they see the right home. Sellers who want to get through the process quickly, without having to move much on price, have a great opportunity to do so right now," Adam Contos, Remax CEO, said in the report. "That advantage should bring more listings into the market in the months ahead, but with inventory levels as low as they are, it will likely be awhile before we see anything resembling a balanced market."

Closed sales grew in October and further dried up the supply. Transactions rose 0.1% from September and 20.8% from October 2019. Hartford, Conn., led all metro areas in annual sales growth, spiking 41.3% year-over-year. Wichita, Kan., came second at 33.9% and Chicago third at 33.4%.

With short supply and historically low interest rates driving demand, prices continued to climb. The median sales price reached $295,000 in October, rising 0.9% from September and 15.4% annually. Augusta, Maine, boasted the largest growth from last October at 29.1%. The 20.5% jump in Tulsa, Okla., just edged out Cincinnati's 20.4% for second place. Meanwhile, none of the 52 metros analyzed saw annual declines.