Leading Housing Indicators Point to a Hot Spring Selling Season for 2021

In a sign that the traditional peak sales months of May through August are returning again, the RE/MAX National Housing Report shows home sales soared in April, marking the highest sales for April in the RE/MAX National Housing Report‘s 13-year history. It was also the 10th highest month for home sales – across all months – in that same timeframe.

But limited inventory remains an issue, even with more homes having come onto the market in April.

In fact, according to the recently released April New Residential Construction Report by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, housing starts declined in April. But despite the dip, Lawrence Yun, Chief Economist for the National Association of REALTORS®, noted the overall underlying trend is still headed in the right direction.

“More housing inventory will reach the market in a few months, certainly by autumn, because of the upward trend in home construction,” he said. “Housing starts are projected to reach 1.6 million for all of 2021 and rise further to 1.7 million in 2022. This would mark the highest home construction activity in 15 years. It’s not an overproduction, but rather an attempt to compensate for multiple years of underproduction that led to the current housing shortage.”

Adam Contos, CEO of RE/MAX Holdings, Inc., sees the latest record-breaking housing stats as a reflection of the supply and demand imbalance, further heightening the need for a trusted real estate professional to help guide buyers and sellers. “Even with rising home prices, super-quick turnarounds, and fierce competition for available listings, April 2021 saw more home sales than any April in at least 13 years. That’s a clear reflection of overwhelming demand and the resilience of today’s buyers,” Contos says. “The 32 Days on Market average – a report record – is noteworthy, too. Many listings are being snapped up the day they go on sale – or within just a few days. That pace underscores the importance of an experienced professional who can guide you to smart decisions and quick action – on either side of the transaction.”

An experienced real estate professional is essential to guiding buyers throughout the complex process, and can serve as a line of defense to help buyers avoid jumping into a deal that could ultimately leave them with a house they can’t afford to maintain or pay off – a potential pitfall the current market lends itself to.

Although year-over-year comparisons are heavily distorted by the pandemic mitigation measures of 2020, here’s the need-to-know data in the latest RE/MAX National Housing Report:

1. Home Sales Are Going Up (We’re looking at you NY and SF!)

Of the 53 metro areas surveyed in April 2021, the overall average number of home sales was up 5.3% compared to March 2021, and up 45.2% compared to April 2020. Coastal metros led year-over-year sales percentage increases with San Francisco, CA at +121.0%, New York, NY at +112.2%, and Miami, FL +111.9%.

2. Home Prices Keep Rising

In April 2021, the median of all 53 metro Median Sales Prices was $320,000, up 5.9% from March 2021 and up 16.4% from April 2020. April 2021 was the highest month-to-month increase since 6.2% from May to June 2019. No metro areas saw a year-over-year decrease in Median Sales Price. Forty-two metro areas increased year-over-year by double-digit percentages, led by Boise, ID at +35.3%, Augusta, ME at +27.7%, and Los Angeles, CA at +25.2%.

3. Homes are Selling at Warp Speed

April’s record low of 32 Days on Market trimmed four days off the previous report record of 36 days set in November 2020 – a significant change from April 2020’s 46 days. The metro areas with the lowest Days on Market were Wichita, KS at 12, Omaha, NE at 13, and a three-way tie between Salt Lake City, UT, Boise, ID, and Seattle, WA at 14. The highest Days on Market averages were in Des Moines, IA at 91, Miami, FL at 88, and New York, NY at 83. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed.

RE/MAX agents can help navigate any housing environment. Contact your RE/MAX agent today if you’re ready to make a move.

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