Check out how the housing market is doing in our June market update.
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.
The Median Sales Price increased 53.8 percent to $702,000 for Single Family homes and 47.4 percent to $420,000 for Condo/Townhouse homes. Average Days on Market decreased 57.1 percent for Single Family homes but increased 21.4 percent for Condo/Townhouse homes. Months Supply of Inventory decreased 48.3 percent for Single Family homes and 81.0 percent for Condo/Townhouse 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.
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