Housing Market Report: July 2021
The five-month streak of record-setting home prices has ended, and the home supply is beginning to inch up.
The median home sale price was $362,750 and did not set a new, record high for the first time since early March. Instead, the median price was basically flat (-0.2%) from the four-week period ending July 25 and up 18% from a year earlier.
If low mortgage rates continue, homebuying conditions will likely improve (relative to earlier in the summer), with more options and less competition for homebuyers.
Here are the numbers:
Zillow Home Value Index
- The typical home value in the United States is now $298,933 (seasonally adjusted value and includes only middle price tier of homes.
- Values for homes in the U.S. have increased 16.7% over 2020.
New Home Purchases Down
- New single-family home sales fell 6.6% from June to 676,000 units Seasonally Adjusted Annual Rate (SAAR) from 724,000 units in May.
- Average sales for the first half of the year are lower than the annual pace for 2020 (812,000 vs. 822,000 SAAR).
Existing Homes Sales Increase After Four-Month Decline
- The National Association of Realtors® (NAR) reports June sales of existing homes rose 1.4% to 5.86 million units (SAAR) from 5.78 million in May.
- This is 22.9% higher than 2020.
Based on closings, June sales reflect contract signings in April and May.
New Home Construction Rose for Second Month
Single-Family Housing Starts
- increased 6.3% – 1.16 million homes (SAAR) in June from 1.09 million units in May.
- Up 25.8% percent from 2020.
Housing Price Increases Continue to Accelerate Year-Over-Year
- Annual gains range from 17 to 18 percent.
- Up 18.0% from 2020.
The FHFA index shows that U.S. home values are up 50% from the peak set in April 2007 during the housing bubble and stand 90% above the low point reached in May 2011.
Homes For Sale Inventory Increased
- The listed inventory of new homes for sale at the end of June stood at 353,000 units, up 7.0% from May. Up 17.3% year-over-year.
- 8% lower than the 1.54 million units available in 2020.
The 30-Year-Fixed-Rate-Mortgage (FRM)
- The FRM remained below 3.0% for a fifth straight week.
- For the week ending July 22, FRM July average weekly low was 2.78%.
Prior to March 2020, the record low for the 30-year FRM was 3.31% the week ending November 21, 2012, during the recovery from the Great Recession. (Source: Freddie Mac).