Low Inventory Drives Days On Market Down
Total housing inventory inched up 0.9% last month to 2.30 million existing homes available for sale, and is 0.4% higher than a year ago. Unsold inventory is at a 5.0-month supply at the current sales pace, down from 5.1-months in May. The percent share of first-time buyers fell to 30% from 32 percent, but remained at or above 30% for the fourth consecutive month. A year ago, first-time buyers represented 28% of all buyers.
Properties typically stayed on the market for 34-days, down from 40-days and the shortest time since tracking began in May 2011. Short sales were on the market the longest at a median of 129-days, while foreclosures sold in 39-days and non-distressed homes took 33-days. Forty-seven percent of homes sold were on the market for less than a month - the highest percentage since June 2013.
The demand for buying has really heated up this summer, leading to multiple bidders and homes selling at or above asking price. Furthermore, tight inventory conditions are being exacerbated by the fact that some homeowners are hesitant to sell because they're not optimistic they'll have adequate time to find an affordable property to move into.
Matching the lowest share since December 2009, all-cash sales were 22% of transactions. Individual investors, who account for many cash sales, purchased 12% of homes - the lowest since August 2014. Sixty-six percent of investors paid cash last month.
Distressed sales fell to 8%, matching an August 2014 low. Six percent of sales were foreclosures and 2% were short sales. Foreclosures sold for an average discount of 15% below market value, while short sales were discounted 18%.