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 up 19.3 percent to 1,721. Pending Sales increased 11.1 percent
to 1,697. Inventory shrank 56.2 percent to 995 units.
Prices moved higher as Median Sales Price was up 12.5 percent to $225,050. Days
on Market decreased 46.8 percent to 25 days. Months Supply of Inventory was
down 63.2 percent to 0.7 months, indicating that demand increased relative to
supply.
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.
Information courtesy of CMLS*
