Market Report - June 2021
School’s out, and as vaccination rates rise and America enters a new normal, the U.S. housing market continues along at a frenzied pace, with low interest rates and limited inventory fueling record high sales prices. May saw the median existing home sales price exceed $350,000, a 24% increase and the largest year-over-year increase since 1999, according to the National Association of REALTORS®. Eager buyers are making multiple offers, some for well over asking price, while others are making offers on homes sight unseen.
New Listings were down 5.9 percent to 674. Pending Sales decreased 31.0 percent to 588. Inventory shrank 65.8 percent to 654 units.
Prices moved higher as Median Sales Price was up 12.7 percent to $400,000. Days on Market decreased 37.4 percent to 92 days. Months Supply of Inventory was down 77.5 percent to 0.9 months, indicating that demand increased relative to supply.
The increase in sales prices comes with a slight decline in existing home sales nationwide, as homebuyers struggle with declining affordability amid a lack of inventory, forcing some buyers to simply wait it out in hopes of more inventory and less competition. Meanwhile, home builders are trying to meet the increased market demand, with housing starts up 3.6% in May from April, according to the Commerce Department. As we ease into new routines and look forward to a post-pandemic future, one thing remains certain: America desperately needs more homes.