RE/MAX has released its National Housing Report for May 2021 that shows the typical spike in sales this time of year did not happen — there was a 0.2 percent drop from April and relatively unchanging home prices in the 53 metro areas covered.
Another broken trend was the 7.1 percent drop in listed homes at a time of year when inventory is ramping up for a peak summer sales month.
“The first small step toward a more balanced market may have appeared in May, as home prices finally stabilized after a long run of sustained increases. At the same time, cooling sales defied typical April-May trends and report records were set for low inventory and fast turnaround times,” says Nick Bailey, president of RE/MAX.
Metro Detroit’s market saw the biggest bump in closed transactions with 4,549 closings, up from 1,923 last year — a 136.6 percent increase. The area also had the fifth largest growth percentage in median sales price at 36, jumping from $192,000 to $250,000.
The pandemic skewed year over year results. April to May averages from 2015 to 2019 show what is typical.
- WhileMay 2021 home sales declined 0.2 percent month over month, 13.9 percent is the 2015-2019 average gain from April to May. Year over year, sales were up 53.4 percent.
- May’s Median Sales Price of$320,000 was the same as April’s, compared to the typical April-to-May increase of 3.2 percent. Year over year, May’s price is 17.0 percent higher than May 2020’s $273,498.
- Instead of the 7.1 percent decline from April to May, inventory typically grows by 1.8 percent. Year over year, inventory was down 43.0 percent.
Albuquerque, N.M.; Hartford, Conn.; Providence, R.I.; Las Vegas, Nev.; and Indianapolis, Ind. were the five markets with the biggest decrease in year-over-year supply of inventory.
Burlington, Vt.; Boise, Id.; Raleigh-Durham, N.C.; Omaha, Neb.; and Pittsburgh, Pa. were the five markets with the biggest decrease in year-over-year days on market.
“May had a little something for everyone — with buyers finally getting a break on prices, sellers benefiting from a lack of competitive inventory, and both sides served by speedier listing-to-contract periods,” says Bailey. “The market still tilts mainly toward sellers, but we could be seeing the first signs of a return to more balance after the hottest stretch of sales in years. Ultimately, that would be good for both buyers and sellers.”