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.
Closed Sales increased 9.3 percent for existing homes but decreased 26.5 percent for new homes. Pending Sales increased 0.6 percent for existing homes but decreased 60.4 percent for new homes. Inventory decreased 39.6 percent for existing homes and 48.8 percent for new homes.
The Median Sales Price was up 13.9 percent to $262,000 for existing homes and 11.7 percent to $435,664 for new homes. Days on Market decreased 60.6 percent for existing homes and 53.6 percent for new homes. Supply decreased 46.7 percent for existing homes and 57.1 percent for new homes.
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 KCRAR and Heartland MLS