Earlier this week figures released show that US existing home sales hit 6 million units, a level not seen since 2006. According to the National Association of Realtors, after what was already a record-setting July, sales of existing houses rose 2.4% to a seasonally adjusted annualized rate of 6 million units, a massive 10.5% higher than a year ago. It could have been even higher as sales were hindered by a lack of supply. As of the end of August, there were just under 1.5 million homes for sale in the States, down nearly 19% on last year. The tight supply, along with imbalance of buyers and sellers, helped push the average price of sales last month to a record high of $310,600, up 11.4% year-on-year. Another record was that time it took to sell a house, just 22 days on average.
Looking at the breakdown, the surge is being most acute at the higher end of the market. The percentage change in sales from a year ago by price range is astounding. Homes priced up to $100,000 saw a 20.5% drop in sales, and those between $100,000 to $250,000 the drop was 8.9%. Between $250,000 and $500,000 there was a 14.2% rise in sales and a 28.2% rise in the $500,000 to $750,000 bracket. However, the big numbers come at the top end of the market, with a 34.5% rise in sales in the $750,000 to $1m range, with a massive 44% increase in the $1m houses sold.
This morning here in the UK, property website Rightmove also reported that sales of ‘top of the ladder’ houses, priced over £1m, similarly surged last month. Agreed sales were 105% higher than a year ago, with the bracket below seeing a 55% rise. The website stated that ‘This price record has been fuelled by buyers looking for more space, including both those who need extra space for their families and those looking for room to work from home’.