Tuesday, June 1, 2021 / by Christopher Barca
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As the weather warms and pandemic restrictions ease across much of the country, the U.S. housing market shows little sign of cooling. Robust buyer demand, fueled by low mortgage rates, continues to outpace supply, which remains near historic lows. Nationwide, inventory remains much lower than it was at this time last year, and sales prices are surging as a result.
New Listings increased 27.7 percent for Single Family homes and 12.3 percent for Condominium homes. Pending Sales increased 57.3 percent for Single Family homes and 231.3 percent for Condominium homes. Inventory decreased 53.9 percent for Single Family homes and 62.2 percent for Condominium homes.
Median Sales Price increased 29.9 percent to $1,039,000 for Single Family homes but decreased 9.6 percent to $615,000 for Condominium homes. Days on Market decreased 0.7 percent for Single Family homes and 12.0 percent for Condominium homes. Months Supply of Inventory decreased 66.0 percent for Single Family homes and 74.1 percent for Condominium homes.
With such limited supply of existing homes to purchase, all eyes are on home builders to provide a much-needed boost of inventory to the market to help meet buyer demand. However, increasing material and labor costs, along with supply chain challenges, have contributed to significantly higher construction costs, with builders passing these costs on to homebuyers. And while the warmer temperatures, rising sales prices, and the reopening of the economy may draw more sellers to the market, historically low levels of homes for sale are likely to continue for some time.