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 the asking price, while others are
making offers on homes sight unseen.
New Listings were up 19.0 percent to 1,768. Pending Sales increased 6.3 percent to
1,586. Inventory shrank 46.1 percent to 1,109 units.
Prices moved higher as Median Sales Price was up 17.5 percent to $235,000. Days
on Market decreased 60.8 percent to 20 days. Months Supply of Inventory was
down 52.9 percent to 0.8 months, indicating that demand increased relative to
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.
Information courtesy of CMLS*