What’s Happening In The Market?
June Update
Please note: this SFAR data is for May 2021
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 were down 15.0 percent for single family homes and 27.6 percent for Condo/TIC/Coop properties. Pending Sales increased 85.8 percent for single family homes and 214.9 percent for Condo/TIC/Coop properties.
The Median Sales Price was up 19.7 percent to $1,900,000 for single family homes and 12.8 percent to $1,227,000 for Condo/TIC/Coop properties. Months Supply of Inventory decreased 53.8 percent for single family units and 47.8 percent for Condo/TIC/Coop units.
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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