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.
Closed Sales increased 9.4 percent for Single Family homes and 33.3 percent for Condo/Townhouse homes. Pending Sales decreased 24.7 percent for Single Family homes and 10.0 percent for Condo/Townhouse homes. Inventory decreased 60.9 percent for Single Family homes and 83.8 percent for Condo/Townhouse homes.
The Median Sales Price increased 39.2 percent to $661,000 for Single Family homes and 42.4 percent to $430,000 for Condo/Townhouse homes. Average Days on Market decreased 46.2 percent for Single Family homes but increased 17.2 percent for Condo/Townhouse homes. Months Supply of Inventory decreased 68.8 percent for Single Family homes and 89.8 percent for Condo/Townhouse 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.
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