On August 23, 2021, the National Association of Realtors (“NAR”) reported that existing home-sales rose 2% between June 2021, and July 2021. Existing home sales are up 1.5% from June 2020. Further, the median sales price of an existing home, as reported by the NAR, is $359,900, which is below the June 2021 record, but still represents a 17.8% increase from July 2020.
While existing sales increased by 2% nationally, the Western region saw the 2nd largest growth, at 3.3%; the Midwest region saw existing sales increase by 3.8%. Notably, the majority of the increase in existing homes appears to be existing homes in the upper-end of the market, while lower-end markets aren’t seeing the same benefits.
It is likely that increased supply is the primary contributor to increased sales, as July 2021’s inventory was a full 7.3% higher than June 2021. There is still plenty of room to improve, as we are currently sitting on a 2.6-month supply of homes; a 6-month supply indicates a balanced market.
Ultimately, the increase in inventory bodes well for buyers, since more homes on the market mean less bidding wars and lower prices. However, a 2.6-month inventory of homes is hardly a sign that we will be entering into a buyers’ market any time soon. As has been the case, the market is cooling slowly.
At the Chernov Team we understand that knowledge is power, and knowledge of how the market is behaving is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table