{"id":2207,"date":"2021-08-06T20:24:48","date_gmt":"2021-08-06T20:24:48","guid":{"rendered":"https:\/\/www.realty.com\/blog\/?p=2207"},"modified":"2021-08-06T20:24:48","modified_gmt":"2021-08-06T20:24:48","slug":"real-estate-market-update","status":"publish","type":"post","link":"https:\/\/www.realty.com\/blog\/real-estate-news\/real-estate-market-update\/","title":{"rendered":"Real Estate Market Update"},"content":{"rendered":"<p><span style=\"font-weight: 400\">From real estate trends to prices and inventories, the market is constantly in flux. The real estate industry is also highly localized, with varying conditions in every state, city, and neighborhood.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Whether you\u2019re house hunting or selling, it\u2019s crucial to know the current state of the market, especially during its busiest months. Below is a mid-year update of the housing market, presenting data from the <\/span><span style=\"font-weight: 400\">National Association of Realtors (NAR).\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Home Sales<\/span><\/h2>\n<p><span style=\"font-weight: 400\">After four consecutive months of decline, existing-home sales increased in June. The main reason for this is that more people are listing their houses for sale. It is a strong seller\u2019s market in general across the U.S now that we\u2019re well into the summer months.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Three out of four major U.S. regions recorded small <\/span><span style=\"font-weight: 400\">month-over-month gains, while the fourth remained flat. However, all four areas marked double-digit year-over-year gains.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Based on NAR\u2019s data, total existing-home sales rose 1.4% on a seasonally adjusted annual rate from May to June. No region showed a sales decline.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">From 4.77 million in June 2020 to 5.86 million in June 2021, sales grew year-over-year, up 22.9%. These completed transactions include single-family homes, townhomes, condominiums, and co-ops.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Here are the existing-home sales in four regions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Northeast:<\/b><span style=\"font-weight: 400\"> Sales rose 2.8% in June, registering an annual rate of 740,000. It is a <\/span><span style=\"font-weight: 400\">45.1% increase compared to last year.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Midwest:<\/b><span style=\"font-weight: 400\"> In June, sales increased 3.1% to an annual rate of 1,330,000. <\/span><span style=\"font-weight: 400\">It <\/span><span style=\"font-weight: 400\">is an 18.8% rise from a year ago.<\/span><\/li>\n<li style=\"font-weight: 400\"><b>South:<\/b><span style=\"font-weight: 400\"> Sales from May were unchanged, registering an annual rate of 2,590,000 in June. <\/span><span style=\"font-weight: 400\">It <\/span><span style=\"font-weight: 400\">is up 19.4% from the same time last year.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><b>West:<\/b><span style=\"font-weight: 400\"> Sales increased 1.7%, recording an annual rate of 1,200,000 in June 2021. <\/span><span style=\"font-weight: 400\">It <\/span><span style=\"font-weight: 400\">is a 23.7% jump from June 2020.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">Home Prices<\/span><\/h2>\n<p><span style=\"font-weight: 400\">This year, home prices and equity positions have continued to go up throughout the country. The median home price for all housing types in June 2021 was $363,300, up 23.4% from June last year ($294,400). This marks 112 consecutive months of year-over-year gains.<\/span><\/p>\n<p><span style=\"font-weight: 400\">According to <\/span><span style=\"font-weight: 400\">Lawrence Yun, NAR&#8217;s chief economist, <\/span><span style=\"font-weight: 400\">home prices are not in danger of a decline due to tight inventory conditions. However, prices are expected to appreciate at a slower pace by the end of the year.<\/span><\/p>\n<p><span style=\"font-weight: 400\">In addition, the prices for a home would increase roughly in line with income growth. This is likely to happen in 2022 as new constructions and more listings become available.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Below are the median home prices in four regions:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><b>Northeast:<\/b> <span style=\"font-weight: 400\">$412,800, a 23.6% climb from June last year<\/span><\/li>\n<li style=\"font-weight: 400\"><b>Midwest: <\/b><span style=\"font-weight: 400\">$278,700, up 18.5% from June last year<\/span><\/li>\n<li style=\"font-weight: 400\"><b>South:<\/b><span style=\"font-weight: 400\"> $311,600, a 21.4% increase from June last year<\/span><\/li>\n<li style=\"font-weight: 400\"><b>West:<\/b><span style=\"font-weight: 400\"> $507,000, up 17.6% from June last year<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400\">Housing Inventory Levels<\/span><\/h2>\n<p><span style=\"font-weight: 400\">The housing supply has been dangerously low in recent years, and the COVID-19 pandemic only made it worse. In 2020, the number of for-sale listings plummeted, at one point reaching the lowest level ever recorded.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">At the end of June, the inventory of unsold homes amounted to 1.25 million units, which is up 3.3% from May and down 18.8% from last year\u2019s inventory (1.54 million).\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Unsold inventory sits at a 2.6-month supply at the current pace of home sales. It is up from 2.5 months last May but down from a 3.9-month supply in June 2020.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Days on Market<\/span><\/h2>\n<p><span style=\"font-weight: 400\">Due to low inventory levels, houses are selling extremely quickly compared to this time last year. In June 2021, 89% of homes sold were on the market for less than a month.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Housing properties usually remained on the market for 17 days in June, which is the same from May and down from 24 days in June last year.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400\">Bottom Line<\/span><\/h2>\n<p><span style=\"font-weight: 400\">While inventory is still down, home sales and prices continue to increase throughout the country. This indicates that the housing market is generally doing well in the summer months.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Although we are likely to experience a market dip, most experts believe that we are certainly not headed for a crash. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>From real estate trends to prices and inventories, the market is constantly in flux. The real estate industry is also highly localized, with varying conditions in every state, city, and neighborhood.\u00a0 Whether you\u2019re house hunting or selling, it\u2019s crucial to know the current state of the market, especially during its busiest months. Below is a &hellip;<\/p>\n","protected":false},"author":15,"featured_media":2208,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26,178,179,22,23],"tags":[],"class_list":["post-2207","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-consumer-guides","category-home-buying","category-home-selling","category-housing-news","category-real-estate-news"],"_links":{"self":[{"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/posts\/2207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/comments?post=2207"}],"version-history":[{"count":1,"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/posts\/2207\/revisions"}],"predecessor-version":[{"id":2209,"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/posts\/2207\/revisions\/2209"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/media\/2208"}],"wp:attachment":[{"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/media?parent=2207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/categories?post=2207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.realty.com\/blog\/wp-json\/wp\/v2\/tags?post=2207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}