Last week the National Association of Realtors issued their Existing Homes Sales Report, which shows housing data for the month of March. In it, we saw that home sales were down 3.7% year over year from 2020. The main reason for this has been lack of housing inventory. Nationally, there are 410,000 less homes for sale than there were at this time last year.
At the same time, buyer activity is stronger than ever. Homes that do hit the market are selling at record prices in a relatively short period of time; many in multiple offer situations. Furthermore, sales of new construction homes are up by 20.7% year over year.
So what can we expect for the remainder of the year. NAR economist Lawrence Yun predicts that home sales this year will be stronger than last year, and even stronger in 2022.
Anecdotally, I have been watching weekly stats on the Minnesota Northstar MLS, and believe it confirms that prediction. Each week for the past month, there have been more listings going on the market than have been selling. This means that inventory is increasing each week. This will allow more buyers to get into homes, and ease some of this intense demand.
What it all means is that it’s a phenomenal time to sell your home. You will get a higher price than any time in recent history. And, as we move through the year you’ll be in a great position to buy as well. Mortgage rates are still at historic lows, so despite higher prices your payments will be lower than any time since 2017.