April sales for existing homes climbed 33.9% year-over-year. The inventory shortages are clearly placing greater incentive on buyers to lock in sales even if it translates into paying 10% or 20% more than they originally thought they would. April sells in 2021 increased by 11% more than in April of 2019.
How competitive is this real estate market? Well, according to the National Association of Realtors, for every one listing there are over five offers, and over half of the homes are being sold above their listed price.
The contraction of inventory is clearly a systemic constraint upon buyers for almost 2 years.
According to the National Association of Realtors, the supply of homes for sale at the end of April was down 20% from March 2021. Nationally, there were 1.16 million homes for sale, this translated into a 2.4-month supply.
New Jersey Inventory Plummets
Back in March 2020, there were over 30,000 single-family homes for sale on the market. In March 2021 there were just under 15,000 existing homes for sale, a 50% decline and only a 1.8-month supply of housing.
The inventory shortages, plus the shortage of building materials, continue to impact the value of homes on the market. The median price for an existing home sold nationally in April was $342,000. This represents a 19.1% increase over April 2020. This is the highest median price on record and also the largest annual increase on record, according to the National Association of Realtors.
In April 2021, the average home is selling in only 17 days, which is the fastest ever recorded, according to the National Association of Realtors. All-cash deals also rose dramatically to 25% from 13% back in 2020. First-time buyers comprised 31% of all purchases, representing a slight decline from the prior month.
Even though the average 30-year mortgage rate climbed from 2.8% in February 2021 to 3.42% at the end of March, the trajectory of the market has not leveled off.
Builders are continuing to search for buildable lots and for materials as well as skilled labor, but the ratio of buyer to seller remains in the favor of sellers.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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