School has started, and as vaccination rates rise and America enters a new normal, the U.S. housing market continues along at a frenzied pace, with continued low-interest rates and limited inventory fueling record-high sales prices. We have seen the median existing-home sales price exceed $350,000, a 24 percent increase and the largest year-over-year increase since 1999, according to the National Association of REALTORS® . Buyers are making multiple offers, some for well over the asking price, while others are making offers on homes sight unseen.
New listings increased ten percent for residential homes and 14.3 percent for townhouse/condo homes. Pending sales decreased 2.5 percent for residential homes but increased 7.7 percent for townhouse/condo homes. Inventory decreased 29.8 percent for residential homes and 24.2 percent for townhouse/condo homes.
Median sales price increased 17 percent to $271,330 for residential homes and 6.2 percent to $187,500 for townhouse/condo homes. Days on market decreased 50 percent for residential homes and 18.9 percent for townhouse/condo homes. Months supply of inventory decreased 36.4 percent for residential homes and 38.5 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% 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.