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 on homes sight unseen.
New Listings increased 13.2 percent for Single Family homes and 39.0 percent for Townhouse‐Condo homes. Pending Sales increased 2.6 percent for Single Family homes and 47.5 percent for Townhouse‐Condo homes. Inventory decreased 36.9 percent for Single Family homes and 42.5 percent for Townhouse‐Condo homes.
Month’s Supply of Inventory decreased 45.0 percent for Single Family homes and 51.6 percent for Townhouse-Condo homes.
Median Sales Price increased 12.0 percent to $225,000 for Single Family homes and 10.0 percent to $137,500 for Townhouse-Condo homes.
Days on Market decreased 55.0 percent for Single Family homes and 45.1 percent for TownhouseCondo homes.
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 to 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.
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