According to Real Estate Data, homes are selling quickly amid low inventory levels. Homes are only sitting on the market for an average of 43 days, 20 days less than in April 2020.
With homes selling at historical speed, the housing market continues to favor sellers. While sellers are listing their homes at a rate far higher than in April 2020, it is unknown when buyers on the market will find relief.
New Listings Up, But the Market is Still Low
Inventory of homes for sale in April 2021 decreased by 53% over the past year, resulting in 554,000 fewer homes for sale than in April 2020. Although home listings increased by 32.6% from April 2020, rates are still down 25.5% from the homes listed between 2017 and 2019.
Sale prices of homes continue to increase due to how fast they are selling, with the number of unsold homes down 20% year-on-year from April 2020. The Southern region of the United States, which was the last to be affected by COVID-19, saw the most significant year-over-year decline in active listings and the lowest year-over-year growth in home listings.
The metros most impacted by COVID-19, the northeastern and midwestern metros, are seeing the most significant year-over-year growth in home listings, including New York (+175.5%), Detroit (+178.8%), and Pittsburgh (+229.3%).
Markets that are continuing to see a decline in new home listings compared to last year include southern metro areas, including Oklahoma City (-30.1%) and Nashville (-30.0%)
Demand Remains High
Since the demand for homes remains high, homes in April 2021 continued to sell quicker than last year. Homes were on the market for 43 days before selling, 20 days less than last year.
Homes in large metro areas of the U.S. spent 34 days on the market, 17 days less than last year. The time a home spent on the market decreased most in the Northeast (-21 days), following the South (-18 days), the Midwest (-16), and the West (-15 days).
Among these larger metros, homes saw the most significant decline of time spent on the market in Pittsburgh (-40 days) and Detroit (-32 days). Conversely, new York was the only larger metro area that saw an increase of 13 days that homes sat on the market.
Home Prices Continue Rising
With high demand and low inventory, listing prices continue to rise. Median national home prices for active listings are up 17.2% from this time last year, with homes reaching the listing price of $375,000.
However, in the larger metro areas of the U.S., the market seems to be slowing down. Listing prices grew 11.6% compared to last year, but lower than March 2021’s rate of 12.1%.
Prices are increasing at different rates among the 50 largest metro areas, with the western markets up 15.2% and southern markets with an 11.7% increase. Northeastern metro listing prices are at a 10.6% increase following the midwestern metro area with an 8.6% growth rate.
In large cities like Austin, home prices have grown by 40% from this time last year. With an increase of 23.6%, Los Angeles has completed the most considerable year-on-year growth.
Memphis has seen a year-on-year decrease of -4% at the other end of the scale, with Milwaukee and Louisville registering drops of -2.4% and -0.9% from last April.
Marimark Realty
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To begin the journey of purchasing or selling your home, or purchasing commercial or investment properties, contact us at your earliest convenience.