Consumer demand is returning in the real estate market, but the inventory of homes for sale is still low. This combination of high demand and low supply provided tailwinds for home prices this spring. Prices were up 1.6% year-over-year in May, signaling the strength of the real estate market despite the ravages of the pandemic.
According to a recent report from Realtor.com, median real estate prices hit a new high nationally last month. As the economy re-opens and more people return to work, demand among buyers for real estate has returned. However, the market shortage of homes for sale – already near historic lows before the pandemic reached the US – has contracted even further. In the last couple of months, the number of homes listed for sale plummeted as home sellers feared hosting buyers in their homes for fear of spreading the virus. This confluence of factors has pushed home prices to a new benchmark.
This is great news for home sellers, who should be looking at a great housing market this summer.