Nationwide, existing home sales were down slightly in August, falling 2% after two consecutive months of increases, according to the National Association of REALTORS®. The decline in existing home sales coincides with rising sales prices, which have continued to soar into fall, with the median sales price of existing homes up 14.9% compared to last year. 

Declining affordability has had a significant impact on homebuyers, many of whom have been priced out of the market and are choosing to wait for sales prices to ease before resuming their home search. 

New Listings decreased 1.7 percent for Single Family and 15.4 percent for Townhouse/Condo. Pending Sales decreased 0.8 percent for Single Family and 14.9 percent for Townhouse/Condo. Inventory decreased 3.5 percent for Single Family and 29.1 percent for Townhouse/Condo. 

Median Sales Price increased 24.6 percent to $349,000 for Single Family and 25.0 percent to $215,000 for Townhouse/Condo. Days on Market decreased 41.7 percent for Single Family and 52.2 percent for Townhouse/Condo. Months Supply of Inventory decreased 15.4 percent for Single Family and 38.5 percent for Townhouse/Condo. 

There are signs the market may be shifting, however. New listings have continued to hit the market, bucking seasonality trends were commonly seen in the fall, a time when listing and sales activity typically slows as children return to school. 

As inventory increases, competition for homes may soften, and could even bring a moderation in sales prices, which, after 114 months of year-over-year gains, would be music to the ears of homebuyers throughout the country.

The booming U.S. housing market has spilled over to the rental market, which has seen demand for apartment and single-family rentals skyrocket this year, as high sales prices and an inadequate supply of available housing have forced many prospective buyers to rent for the foreseeable future. Increased demand for housing, along with an improving economy, has competition for rental units soaring, and landlords are taking note, with the national median rent increasing 11.4% in 2021 so far, according to Apartment List.

New Listings increased 2.1 percent for Single Family but decreased 15.3 percent for Townhouse/Condo. Pending Sales decreased 0.4 percent for Single Family and 5.0 percent for Townhouse/Condo. Inventory decreased 16.1 percent for Single Family and 35.2 percent for Townhouse/Condo. 

Median Sales Price increased 20.9 percent to $335,000 for Single Family and 20.9 percent to $211,500 for Townhouse/Condo. Days on Market decreased 58.6 percent for Single Family and 61.5 percent for Townhouse/Condo. Months Supply of Inventory decreased 23.1 percent for Single Family and 50.0 percent for Townhouse/Condo.

In new construction, home builders continue to struggle to meet buyer demand, as housing starts nationwide dropped 7% last month, according to the Commerce Department. Single-family home construction declined 4.5%, and multi-family home construction, which includes condos and apartment buildings, was also down, falling by 13%. Labor shortages, rising
material costs, and supply-chain setbacks continue to challenge builders, with some projects temporarily paused due to availability and cost of materials.

The White House recently announced additional measures to help struggling homeowners avoid foreclosure as they exit forbearance, including loan modifications and payment reductions. Borrowers with federally backed mortgages can lock in lower interest rates and extend the length of their mortgages. For borrowers who can’t resume their monthly
mortgage, HUD will offer lenders the ability to provide all eligible borrowers with a 25% principal and interest reduction. 

New Listings increased 7.1 percent for Single Family and 5.0 percent for Townhouse/Condo. Pending Sales increased 5.7 percent for Single Family and 2.3 percent for Townhouse/Condo. Inventory decreased 28.5 percent for Single Family and 37.7 percent for Townhouse/Condo. 

Median Sales Price increased 22.2 percent to $330,000 for Single Family
and 31.4 percent to $209,000 for Townhouse/Condo. Days on Market decreased 65.7 percent for Single Family and 61.3 percent for Townhouse/Condo. Months Supply of Inventory decreased 30.8 percent for Single Family and 46.2 percent for Townhouse/Condo. 

The National Association of REALTORS® reported inventory of homes for sale nationwide rose slightly in June as more sellers list their homes, hoping to take advantage of record-high sales prices across the country. Even with renewed home seller interest, inventory overall remains 18.8% lower than a year ago, according to NAR. Meanwhile, the foreclosure moratorium on federally backed mortgages, initiated at the beginning of the COVID-19 pandemic, expired on July 31. At present, about 1.75 million Americans remain in forbearance, which has decreased more than 50% from its peak during the pandemic.

School’s out, and as vaccination rates rise and America enters a new normal, the U.S. housing market continues along at a frenzied pace, with low interest rates and limited inventory fueling record high sales prices. May saw the median existing-home sales price exceed $350,000, a 24% increase and the largest year-over-year increase since 1999, according to the National Association of REALTORS®. Eager buyers are making multiple offers, some for well over asking price, while others are making offers on homes sight unseen.

New Listings increased 14.9 percent for Single Family and 21.7 percent for Townhouse/Condo. Pending Sales decreased 5.7 percent for Single Family but increased 6.9 percent for Townhouse/Condo. Inventory decreased 42.2 percent for Single Family and 51.8 percent for Townhouse/Condo.

Median Sales Price increased 31.5 percent to $342,000 for Single Family and 29.6 percent to $230,000 for Townhouse/Condo. Days on Market decreased 67.6 percent for Single Family and 69.0 percent for
Townhouse/Condo. Months Supply of Inventory decreased 46.2 percent for Single Family and 64.3 percent for Townhouse/Condo.

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% in May
from April, 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.

As the weather warms and pandemic restrictions ease across much of the country, the U.S. housing market shows little sign of cooling. Robust buyer demand, fueled by low mortgage rates, continues to outpace supply, which remains near historic lows. Nationwide, inventory remains much lower than it was at this time last year, and sales prices are surging as a result.

New Listings increased 4.7 percent for Single Family and 0.9 percent for Townhouse/Condo. Pending Sales increased 6.0 percent for Single Family and 24.8 percent for Townhouse/Condo. Inventory decreased 61.0 percent for Single Family and 67.3 percent for Townhouse/Condo.

Median Sales Price increased 31.8 percent to $329,500 for Single Family and 29.2 percent to $206,000 for Townhouse/Condo. Days on Market decreased 56.7 percent for Single Family and 63.0 percent for Townhouse/Condo. Months Supply of Inventory decreased 64.7 percent for
Single Family and 76.5 percent for Townhouse/Condo.

With such a limited supply of existing homes to purchase, all eyes are on home builders to provide a much-needed boost of inventory to the market to help meet buyer demand. However, increasing material and labor costs, along with supply chain challenges, have contributed to significantly higher construction costs, with builders passing these costs on to homebuyers.
And while the warmer temperatures, rising sales prices, and the reopening of the economy may draw more sellers to the market, historically low levels of homes for sale are likely to continue for some time.