Home Prices Break New Record

There are some very interesting new market statistics available

Housing demand has continued to be significantly strong to the point that it is driving home prices to enter new levels. According to a recent report from the National Association of Realtors (NAR) for the month of March we have reached record-high home prices as well as year-over-year gains in the total number of home sales in all 4 major regions of the country.

While home sales were up this year over last year at this time, there was a slight dip in sales from the month prior. The severe lack of inventory is still posing its challenges with not enough options for eager buyers. 

"The sales for March would have been measurably higher, had there been more inventory," he added. "Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising." 

Market Statistics

Total housing inventory was down 28.2% from last year at this time with unsold inventory at just over a two month supply given the current sales pace. Total inventory numbers are near an all time low since NAR first started recording numbers of supply back in 1982.

Despite any changes in mortgage rates, they are still remaining favorably low with a promising forecast for the year. The average for a fixed rate mortgage was 3.08% for the month of March which was lower than all of last year’s average of 3.11%.

The median existing home price for all types of properties in the month of March was now breaking the $300,000 threshold coming in at $329,100. This was up by 17.2% over 2020 at this time with price gains showing for all major regions. This is also the 109th consecutive month for year-over-year increases. 

The average time on the market for properties for sale in March was only a short 18 days or less than 3 weeks. This was down from the 20 days seen the month prior and roughly half of March of 2020 at 29 days. The lion’s share of homes sold in March were on the market for less than one month. 

NAR shares their forecast by stating "At least half of the adult population has received a COVID-19 vaccination, according to reports, and recent housing starts and job creation data show encouraging dynamics of more supply and strong demand in the housing sector."