Bulletin Board Magazine 2021 Volume 3

Real Estate Update

DOES THIS BOOM still have room? by Suzzane Kronenfeld, New Home Sales Consultant, Realtor.com

N o one could have predicted what the housing market would look like last year when we went into lockdown because of the pandemic. Buyers were leaving cities and relocating to the suburbs, many times back to the towns wherethey grew up. Vacation homes became primary homes. With more buyers than sellers, multiple offers were the name of the game with the final saleprice oftengoing way over the asking price. Some buyers gave up oninspections and appraisals to make their offer the most attractive. Here we are a year later and the market is still strong. The demand side remains strong fueled by millennials and boomers. Millennials now have the greatest influence on the housing market and continue to age into the key lifestyle decisions that increase the likelihood of home ownership.They are oftenlooking for a quiet location, alarge backyard, proximity to public schools, space for pets, anopen floor plan and a home office. Many boomers are taking advantage of record highprices to sell andrelocate to retirement communities or smaller metropolitan areas with a slower pace of life. Unprecedented records were set in the past year: fastest house price appreciation since 2005, fewest days on market, lowest mortgage rates and greatest number of cumulative purchase mortgage applications since 2008.

Suzzane Kronenfeld New Home Sales Consultant Realtor.com

Currently housing demand is easing while supply is moderately improving. Pending sales fell almost 6% from one year ago while new listings during the same period rose 3.1% however inventory is still 21.1% below a year ago. Heated price appreciation is starting to cool with the median sales price of existing homes selling at a slower pace than last year. Where do we go from here? While the market is starting to see fewer homes bought over list price and a gradual return to a more normalized market, the slowdown is due to lack of supply, not lack of demand. The boom still has plenty of room to run for the foreseeable future. To get more of the latest and most comprehensive real estate forecasts, analysis and commentary, visit realtor.com/research.

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