Main Content

Housing Market is Heading in the Right Direction as Inventory Increases

The Real Deal

Everything Real Estate in the San Fernando Valley
Tuesday August 24, 2021
Housing Market is Heading in the Right Direction as Inventory Increases

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

08

Stay Connected

Sign up to Access:

Exclusive private listings S.F. Valley market insights VIP events

    Thanks for signing up!
    By signing up you agree to our Terms & Conditions

    More Blog Posts

    To Love
    Monday September 20, 2021

    On September 16, 2021, Governor Newsom signed one of four planned bills directed at enabling housing construction i...

    Read Full Post
    Tuesday September 14, 2021

    Since the onset of the pandemic a year-and-a-half ago, sellers have been a lot like the Los Angeles Dodgers – the...

    Read Full Post
    Friday September 3, 2021

    For the sake of not rocking the boat, let’s put aside the question of what is causing climate change and simply a...

    Read Full Post
    Monday August 30, 2021

    On Thursday, August 26, 2021, the Supreme Court of the United States (“SCOTUS”) struck down the Biden Administr...

    Read Full Post
    Monday August 16, 2021

    The new construction sector of the housing market has been seeing positive signs. To briefly recap, the cost of lum...

    Read Full Post
    Thursday August 12, 2021

    Between April 2020 and April 2021, housing inventory spiraled out of control, dropping further and further every mo...

    Read Full Post