As the weather warms and pandemic restrictions ease across much of the country, the US Housing Market shows little signs of cooling. Robust buyer demand, fueled by low mortgage rates, continues to outpace supply which remains much lower than it was this time last year, and sales prices are surging as a result.

New Listings decreased 19.2 percent for Single Family homes and 1.8 percent for Townhouse/Condo homes. Pending sales increased 152.8 percent for Single Family homes and 136.2 percent for Townhouse/Condo homes. Inventory decreased by 68.5 percent for Single Family homes and 52.0 percent for Townhouse/Condo homes.

Median Sales Price increased 8.6 percent to $379,000 for Single Family Homes and 15.9 percent to $255,000 for Townhouse/Condo homes. Days on Market decreased 59.0 percent for Single Family homes and 9.3 percent for Townhouse/Condo homes. Months supply of inventory decreased 76.9 percent for Single Family homes and 66.0 percent for Townhouse/Condo homes.

With such limited supply of existing homes to purchase, all eyes are on home builders to provide a much-needed boost of inventory to the market to help meet buyer demand. However, increasing material and labor costs, with builders passing these costs on to homebuyers. And while the warmer temperatures, rising sales prices, and the reopening of the economy may draw more sellers to the market, historically low levels of homes for sale are likely to continue for some time.

Ann Arbor Area Board of Realtors, June 10, 2021