JULY 2021
The White House announced additional measures to help struggling homeowners avoid foreclosure as they exit forbearance, including loan modifications and payment reductions. Borrowers with federally backed mortgages can lock in lower interest rates and extend the length of their mortgages. For borrowers who can’t resume their monthly mortgage, HUD will offer lenders the ability to provide all eligible borrowers with a 25% principal and interest reduction.
- New Listings decreased 2.4 percent for Single Family homes and 12.8 percent for Townhouse/Condo homes.
- Pending Sales decreased 13.3 percent for Single Family homes but increased 20.4 percent for Townhouse/Condo homes.
- Inventory decreased 40.3 percent for Single Family homes and 52.8 percent for Townhouse/Condo homes.
- Median Sales Price increased 23.8 percent to $495,000 for Single Family homes and 10.3 percent to $215,000 for Townhouse/Condo homes.
- Median Time to Contract decreased 62.1 percent for Single Family homes and 56.3 percent for Townhouse/Condo homes.
- Months Supply of Inventory decreased 53.1 percent for Single Family homes and 68.2 percent for Townhouse/Condo homes.
The National Association of REALTORS® reported inventory of homes for sale nationwide rose slightly in June as more sellers list their homes, hoping to take advantage of record-high sales prices across the country. Even with renewed home seller interest, inventory overall remains 18.8% lower than a year ago, according to NAR.
June 2021
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 increased 11.1 percent for Single Family homes but decreased 3.4 percent for Townhouse/Condo homes.
- Pending Sales decreased 2.0 percent for Single Family homes but increased 46.2 percent for Townhouse/Condo homes.
- Inventory decreased 48.4 percent for Single Family homes and 51.8 percent for Townhouse/Condo homes.
- Median Sales Price increased 27.2 percent to $495,000 for Single Family homes and 14.1 percent to $222,500 for Townhouse/Condo homes.
- Median Time to Contract decreased 73.0 percent for Single Family homes and 55.6 percent for Townhouse/Condo homes.
- Months Supply of Inventory decreased 61.1 percent for Single Family homes and 68.7 percent for Townhouse/Condo 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.