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. Low interest rates and limited inventory are 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 were up in the Charlotte region by 12.0 percent to 6,148. Pending Sales decreased 2.0 percent to 5,653. Inventory shrank 51.8 percent to 3,462.

 

Prices moved higher as Median Sales Price was up 18.4 percent to $335,000. Months Supply of Homes for Sale was down 56.3 percent to 0.7, indicating that demand increased relative to supply.
 

The increase in sales prices comes with a slight decline in existing home sales nationwide, as home buyers struggle with declining affordability amid a lack of inventory. This has forced 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 percent 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.