As REALTORS®, we’re keen on staying up-to-date on the latest trends to hit the housing market. One of our passions is to help keep our clients educated on the information we’re privy to that they might not be thinking about. Follow along below, and keep an eye out for our future reports as we track summer housing market trends.
In this week’s blog, we’re uncovering the trends from our latest June Housing Market Report.
“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.
New Listings were down 43.4 percent to 262. Pending Sales decreased 58.7 percent to 112. Inventory shrank 34.0 percent to 665 units.
Prices moved higher as the Median Sales Price was up 20.5 percent to $361,500. Days on Market decreased 37.8 percent to 56 days. Months Supply of Inventory was down 49.2 percent to 3.1 months.
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.”
Seeking even more information on the latest housing market trends? You can follow along with NYSAR’s market reports here. Their latest report on Q2 2021 states:
“Q2 2021 continued the trends seen in the first quarter – strong buyer demand and low inventory in most market segments, coupled with low interest rates, drove multiple offers for above asking price on many properties. In May, the National Association of REALTORS® reported that the median sales price of existing homes rose by 24% over the previous year – the highest increase since 1999. While this breakneck pace of price appreciation is likely to slow a bit in the coming months, low inventory and healthy buyer demand are expected to keep the market active throughout the next quarter.”
Sources agree that the summer real estate market continues to heat up with increased buyer demand, with expectations this will continue on into the fall months. Realtor.com states:
“For real estate markets, the summer buying season is fully underway, with many families seeking to take advantage of the current market and favorable financing to find their next home before the start of the school year. The good news is that a combination of factors is creating home buying opportunities. On one hand, mortgage rates have been dropping for a month, moving toward the lows we saw in January and February of this year. On the other hand, more homeowners are entering the market, with the number of freshly-listed homes for sale advancing in 14 of the last 17 weeks. This dynamic confluence of housing developments is helping keep price growth in check as we approach August. Looking at the months ahead, we expect inventory to continue growing into the fall, shifting the typical seasonal trend and keeping real estate activity on a roll.”
Follow along as we continue to share the latest and greatest on real estate market trends on our blog here. Our team at UCBR strives to elevate the real estate industry by supporting our community and continuing education for professionals and their client base. Cheers!
