Saturday, July 10, 2021 / by Christopher Barca
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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 remained flat for Single Family homes but decreased 18.5 percent for Condominium properties. Pending Sales increased 5.1 percent for Single Family homes and 110.2 percent for Condominium homes. Inventory decreased 46.4 percent for Single Family homes and 69.8 percent for Condominium homes.
Median Sales Price increased 44.5 percent to $1,117,500 for Single Family homes and 26.2 percent to $635,000 for Condominium homes. Days on Market decreased 27.3 percent for Single Family homes and 16.1 percent for Condominium homes. Months Supply of Inventory decreased 60.4 percent for Single Family homes and 81.0 percent for Condominium 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 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.