NEW YORK, NY, NOVEMBER 5, 2021 — Compass, Inc. (NYSE: COMP), a leading real estate technology and services company, today released a market data report based on findings by Compass’ Senior Managing Director, EA Stribling-Kivlan. The report focuses on residential real estate market data from September 2021 and expands upon trends across the country with a spotlight on four midwest Compass markets: Indianapolis, IN, Kansas City, MO, St. Louis, MO, and Milwaukee, WI.
“In Indianapolis, Kansas City, St. Louis, and Milwaukee, Compass agents tell me that over the last 18 months their cities continue to be in a hyper-mode,” said EA Stribling-Kivlan, Managing Director, Compass. “Home transactions remain quicker than normal, as other parts of the economy continue to run hot, despite global supply chain issues and lack of inventory in real estate and other key sectors of the economy.”
“According to the National Association of REALTORS®, existing home sales jumped 7% on a seasonally adjusted rate in September 2021 over August 2021, showing the heightened demand has increased after a slight slow down in August 2021 over July 2021,” said EA Stribling-Kivlan. “This increase in demand is most likely due to the lack of supply in homes on the market, desire to lock in lower mortgage rates by potential buyers, and consumers wanting to take advantage of the summer months for vacationing, following strict shutdowns across the country in the summer of 2020 due to the global pandemic.”
National market updates[^1]:
Total sales of existing homes, including single-family homes, townhomes, condominiums, and cooperative residences, decreased 2.3% in September 2021, compared to September 2020.
Driving the decline in numbers of residential sales is the decrease in inventory, with total housing inventory down 13% for September 2021, compared to September 2020.
With high demand and low supply, the national average of days on the market for September 2021 was hovering around 17 days, which is down from 21 days compared to September 2020. Ultimately, 86% of homes put on the market in September 2021 were on the market for less than a month.
First-time home buyers have continued to slow their presence in the market, with 28% of September 2021 sales going to first-time home buyers, down from 31% in September 2020.
In contrast to first-time home buyers, individual investors and second-home buyers continue to assert their presence in the market, accounting for 13% of September 2021 home sales, inching past 12% from September 2020.
23% of all home sales in September 2021 were all-cash, compared to 18% in September 2020, also demonstrating the continued interest from individual investors and second-home buyers.
Focusing on Indianapolis, IN, Kansas City, MO, St. Louis, MO, and Milwaukee, WI, EA Stribling-Kivlan provided insights into the statistical nuances of each market and how they compare to the national trends of the overall housing market:
Indianapolis, IN saw the biggest jump in median sales price, nearly 13% year over year, surpassing the $250,000 mark[^2]:
Indianapolis has seen a significant change in market movement, with a 24% decrease in a listing’s average days on the market, lowering to an average of just 19 days, compared to an average of 25 day in September 2020.
Additionally, the Indianapolis market’s competition for properties has heated up, driving the median sales price up nearly 13% and average percent of list price received by 1.5%, the biggest increases in the midwest cities profiled within this report, compared to September 2020.
Demand throughout Indianapolis has caused a lack of inventory compared to September 2020, with decreases in both the inventory of homes for sale and overall number of homes sold, down by 17.4% and 2.4%, respectively.
“Local Compass agents have seen a trend of buyers, who are financing purchases through mortgages, providing appraisal guarantees with their offers to remain competitive. In these scenarios, buyers are essentially guaranteeing to the seller that they will provide any monetary difference, should the mortgage or bank appraisal fall short of the mutually agreed upon sale price,” said EA Stribling-Kivlan.
Single Family Homes:
Overall Number Of Homes Sold
3,734 - September 2020
3,645 - September 2021
- 2.4% Percent Change
Median Sales Price
$225,000 - September 2020
$254,062 - September 2021
+ 12.9% Percent Change
Average Percent Of List Price Received
99% - September 2020
100.5% - September 2021
+ 1.5% Percent Change
Average Days On Market
25 - September 2020
19 - September 2021
- 24% Percent Change
Inventory Of Homes For Sale [^3]
3,203 - September 2020
2,646 - September 2021
- 17.4% Percent Change
Kansas City, MO represents the swiftest change in market by far, with a nearly 46% decrease in a listing’s average days on market[^4]:
Dropping 17 days, a nearly 46% decrease in average days on the market compared to September 2020, Kansas City represents the swiftest change in market by far when compared to the other midwest cities profiled within this report.
While Kansas City listings are spending a significantly less amount of time on the market, median sales price and average percent of list price received have increased modestly at 4% and 0.9%, respectively, compared to September 2020.
As a result of the fast-moving market and increased demand, Kansas City’s inventory of listings noticeably decreased by 19.5%, compared to active listings at the end of September 2020.
“Kansas City has attracted the attention of buyers coming from both the east and west coasts, noted local Compass agents. Whether it be to relocate as a primary residence, or invest in a secondary income property, buyers from larger cities are paying attention to Kansas City’s growing housing market while it is still affordable,” said EA Stribling-Kivlan.
Single Family Homes:
Overall Number Of Homes Sold
4,361 - September 2020
4,150 - September 2021
- 4.8% Percent Change
Median Sales Price
$250,000 - September 2020
$260,000 - September 2021
+ 4% Percent Change
Average Percent Of List Price Received
98.9% - September 2020
99.8% - September 2021
+ 0.9% Percent Change
Average Days On Market
37 - September 2020
20 - September 2021
- 45.9% Percent Change
Inventory Of Homes For Sale [^5]
5,679 - September 2020
4,571 - September 2021
- 19.5% Percent Change
St. Louis, MO depicts the largest decrease in active listing inventory, descending over 23% year over year[^6]:
Lowering 10 days, listings within the St. Louis market saw a decrease in average days on the market by nearly 30%, compared to September 2020, falling in line with the overall average of the midwest cities profiled within this report.
Continuing the theme of strong demand, St. Louis’ median sales price has seen a significant 8.2% jump, compared to September 2020, with the new median sales price climbing to $265,000. While St. Louis listings selling over list price was commonplace in September 2020, this trend has only grown with the average listing selling 1.7% over list price in September 2021.
St. Louis’ listing inventory has shown the largest decrease year over year compared to the other midwest cities included in this report, with the number of active listings at the end of September 2021 descending 23.4%, compared to the end of September 2020.
“Similar to Kansas City, local Compass agents have seen buyers coming from larger cities interested in investment and multi-family properties to build out their real estate portfolios. In the most sought after neighborhoods, smaller homes from the mid-century era are being purchased and replaced by larger custom built homes,” said EA Stribling-Kivlan.
Single Family Homes:
Overall Number Of Homes Sold
2,061 - September 2020
1,943 - September 2021
- 5.7% Percent Change
Median Sales Price
$245,000 - September 2020
$265,000 - September 2021
+ 8.2% Percent Change
Average Percent Of List Price Received
100.4% - September 2020
101.7% - September 2021
+ 1.3% Percent Change
Average Days On Market
34 - September 2020
24 - September 2021
- 29.4% Percent Change
Inventory Of Homes For Sale [^7]
3,565 - September 2020
2,731 - September 2021
- 23.4% Percent Change
Milwaukee, WI showcases the result of continued lack of inventory with a 5.8% decrease in the overall number of sales, the greatest decrease year over year[^8]:
The Milwaukee real estate market has continued to move quickly with the average listing spending just 17 days on the market, down nearly a week compared to September 2020.
Alongside spending less time on the market, listings are selling for more money with the median sales price for Milwaukee listings inching close to $300,000, nearly a 10% increase compared to September 2020, with the average listing selling 0.5% over asking.
As homes spend less time on the market and sell at higher price points, the demand continues to outweigh the supply, shown with the number of active inventory at the end of September 2021 decreasing by 2.3%, and resulting in the overall number of homes sold decreasing by 5.8%, compared to September 2020.
“Milwaukee isn't just known for bratwurst and beer, people love the Milwaukee area because of its prime location, ease of travel, and ample job resources. Local Compass agents are seeing multiple offers on properties and to remain competitive, buyers from nearby metros like Chicago are waiving contingencies,” said EA Stribling-Kivlan, Senior Managing Director at Compass.
Single Family Homes:
Overall Number Of Homes Sold
1,714 - September 2020
1,615 - September 2021
- 5.8% Percent Change
Median Sales Price
$269,000 - September 2020
$295,000 - September 2021
+ 9.6% Percent Change
Average Percent Of List Price Received
99.9% - September 2020
100.5% - September 2021
+ 0.6% Percent Change
Average Days On Market
23 - September 2020
17 - September 2021
- 26.1% Percent Change
Inventory Of Homes For Sale
3,279 - September 2020
3,204 - September 2021
- 2.3% Percent Change
[^1]Based on data from the National Association of REALTORS® for the periods and locations described. Compass makes no guarantees as to the reliability, accuracy, or up to date nature of any information from the National Association of REALTORS®. Copyright ©2021 “Existing-Home Sales Ascend 7.0% in September.” NATIONAL ASSOCIATION OF REALTORS®. All rights reserved. Reprinted with permission. October 21, 2021, https://www.nar.realtor/newsroom/existing-home-sales-ascend-7-0-in-september.
[^2]Based on data from the MIBOR REALTOR® Association in partnership with Domus Analytics for Single Family Homes in 16 Counties (Bartholomew, Boone, Brown, Decatur, Hamilton, Hancock, Hendricks, Jackson, Jennings, Johnson, Madison, Marion, Montgomery, Morgan, Putnam, Shelby) in Indiana surrounding the Indianapolis, IN metropolitan area for the periods described. Compass makes no guarantees as to the reliability, accuracy, or up to date nature of any information from the MIBOR REALTOR® Association or Domus Analytics.
[^3]The number of properties available for sale in active status at the end of a given month.
[^4]Based on data from the Kansas City Regional Association Of REALTORS® in partnership with the Heartland Multiple Listing Service for both new and existing Single Family Homes in 9 Counties in Kansas (Atchison, Douglas, Franklin, Jefferson, Johnson, Leavenworth, Linn, Miami, Wyandotte) and 10 Counties (Bates, Buchanan, Cass, Clay, Clinton, Jackson, Johnson, Lafayette, Platte, Ray) in Missouri, surrounding the Kansas City metropolitan area for the periods described. Compass makes no guarantees as to the reliability, accuracy, or up to date nature of any information from the Kansas City Regional Association Of REALTORS® or the Heartland Multiple Listing Service.
[^5]The number of properties available for sale in active status at the end of a given month.
[^6]Based on data from St. Louis REALTORS® in partnership with Mid America Regional Information Systems (MARIS) for Single Family Homes in St. Louis City and St. Louis County, MO for periods described. Compass makes no guarantees as to the reliability, accuracy, or up to date nature of any information from St. Louis REALTORS® or Mid America Regional Information Systems (MARIS).
[^7]The number of properties available for sale in active status at the end of a given month.
[^8]Based on data from Metro Multiple Listing Service in partnership with RapidStats for Single Family Homes in 4 Counties (Milwaukee, Ozaukee, Washington, Waukesha) in Wisconsin surrounding the Milwaukee, WI metropolitan area for the periods described. Compass makes no guarantees as to the reliability, accuracy, or up to date nature of any information from Metro Multiple Listing Service or RapidStats.
[^9]The number of properties available for sale in active status at the end of a given month.
