Housing Market News for the Week of June 4, 2021
Surging Home Prices Could be Set for a Cooldown
The U.S. median home price continued to post double-digit appreciation in May and reached a record high of $380,000, realtor.com® reports. But the rate of price growth has shown signs of slowing for the second time in 13 months (15.2% year-over-year in May compared to 17.2% annually in April), realtor.com®’s Monthly Housing Trends Report shows.

Prices have been rising due to high buyer demand and a lack of inventory. Inventories are less than half the total number of homes for sale on the market compared to a year ago. Read more from NAR's Realtor Magazine.
Buyers Are Realistic About Housing Shortage Challenges
House hunters are realizing they may need to expand their timelines to find a home. While they’re still anxious to buy, they are getting the messages about the competitive housing market and fierce bidding wars that they realize may delay their plans.

The share of consumers who hoped to buy a home in the next six months plummeted from 34% a year ago to 21% this year, according to a newly released homebuyer flash survey conducted by Point2 Homes, an online real estate marketplace.

But it’s not from a lack of eagerness: 50% of respondents said they were determined to buy as soon as they find the right property. Read more from NAR's Realtor Magazine.
Eight Out of 10 People Who Relocated During the Pandemic Are in a Similar or Better Financial Position Post-Move
Key findings from a recent survey of Redfin.com users who moved to a different metro area from March 2020 through March 2021:

  • 78% have the same or more disposable income after their move. 
  • 68% have the same or lower housing costs than before their move. 
  • 64% moved into a home that’s the same size or bigger than their previous residence.  
  • 80% have no regrets about their decision to relocate.
  • 80% are happier post-move. 

Seventy-eight percent of homebuyers we recently surveyed who have relocated to a different metro area since the pandemic began have the same or more disposable income after their move. Read more from Redfin.
Census Report Itemizes New Home Features
The U.S. Census Bureau has released pieces of its 2020 report, Characteristics of New Housing. This is a massive annual compilation of data on what builders are building and, hopefully, what buyers have been or will be buying. The browsable microdata will not be released for a while - typically it comes out in August - but here are some of what the Bureau considers highlights of the new report.

There were 912,000 single-family homes completed in 2020 with a median size of 2,261 square feet. All but 42,000 had air conditioning. Ninety thousand of those homes contained two bedroom or fewer while 29,000 had a maximum of 1.5 bathrooms. Homes with four bedrooms or more totaled 401,000 and 309,000 had at least three bathrooms. Read more from Mortgage News Daily.
Is Commute Still a Housing Factor After All?
While many workers plan, at least according to recent surveys, to continue spending at least part of each week working from home, a shorter commute still seems to be holding increasing appeal. The National Association of Home Builders (NAHB ) says its first quarter Home Building Geography Index (HBGI) indicates not only a pandemic driven shift in construction to low density, low cost markets, but a rapid expansion in areas with the shortest commutes. Read more from Mortgage News Daily.
To Sell Your Home Quickly, List it on a Thursday Before Labor Day
  • Homes listed on a Thursday sell faster and are more likely to sell above list price than those listed on any other day of the week. 
  • Nationally, 21% of homes are listed on a Thursday, and it’s as high as a third of homes in some markets.
  • Persistent and sustainable buyer demand has kept the housing market moving quickly through what are usually slower months of the year, a potential signal that the typical seasonal patterns may be less prevalent moving forward. 

With almost half of U.S. homes selling in less than a week this spring, it’s not unreasonable for many sellers to expect an ultra-fast sale in 2021. But when days matter, for those looking to shave even more time off their sale — and to potentially maximize proceeds — it’s best to consider putting their home on the market on a Thursday and to do so prior to Labor Day. Read more from Zillow.
Mortgage Market Update
Home prices continue to accelerate while inventory remains low and new home construction cannot happen fast enough. There are many potential homebuyers who would like to take advantage of low mortgage rates, but competition is strong. For homeowners however, continued low rates make refinancing an option worth considering.
We hope you enjoyed this week's Market News. For more information about how PMA can help you, please contact us.
phone: 610.834.8700

Information and analysis is obtained through third parties and is deemed accurate but not guaranteed. Philadelphia Mortgage Advisors is a licensed mortgage lender by the PA Dept. of Banking and Securities, NJ Dept. of Banking & Insurance, the state of DE, the Florida Office of Financial Regulation, MD Mortgage Lender #23004 and VA State Corporation Commission #MC - 6797. NMLS #128570.
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