Housing Market News for the Week of June 18, 2021
Over Half of Homes Sold Above List Price in May for the First Time On Record
The housing market set new records for home-selling prices, speeds and competition. However, seasonally adjusted home sales and new listings flattened from April. Leading indicators of housing market activity are also declining into June, according to the latest weekly data, signalling that the pace of the market may be slowing. The following measures all hit new records in Redfin’s data, which goes back through 2012:
  • The national median home-sale price hit a record high of $377,200, up a record 26% year over year.
  • The number of homes for sale fell to a record low, down 27% from 2020.
  • The typical home sold in just 16 days, a record low and down from 38 days in May 2020.
  • 54% of homes sold above their list price, a record high, up from 26% a year ago.
  • The average sale-to-list ratio, a measure of how close homes are selling to their asking prices, hit a record high of 102.2%. In other words, the average home sold for 2.2% above its asking price.
Stay Up-To-Date on Local Housing Market Data with Long & Foster's Latest Market Conditions Report
Yun: ‘Vacation Homes Are a Hot Commodity’
Buyers flooded the real estate market in the second half of 2020 through April 2021 in search of a vacation home. Vacation home sales are posting double-digit growth as the pandemic has encouraged more consumers desiring a second home and more flexibility for remote work to take the leap.

Vacation home sales jumped 57% year over year in 2020 compared to the 20% annual growth in total existing-home sales, according to the National Association of REALTORS®’ newly released 2021 Vacation Home Counties Report.

“Vacation homes are a hot commodity at the moment,” says Lawrence Yun, NAR’s chief economist. “With many businesses and employers still extending an option to work remotely to workers, vacation housing, and second homes will remain a popular choice among buyers.” Read more from NAR's Realtor Magazine.
House Flipping Hits Lowest Level Since 2000
Only one in 37 transactions were flips in first quarter
Only 2.7% of all home sales in the first quarter of 2021 were flips—or one in 37 transactions, the lowest level since 2000.

Per a report from ATTOM, a national property database, 32,526 single-family homes and condominiums in the U.S. were flipped in the first quarter. That number is down from 4.8%, or one in every 21 home sales in the nation during the fourth quarter of 2020. It’s also down from 7.5%, or one in 13 sales, in the first quarter of 2020.

“It’s too early to say for sure whether home flippers indeed have gone into an extended holding pattern,” said Todd Teta, ATTOM chief product officer. “But the first quarter of 2021 certainly marked a notable downturn for the flipping industry, with the big drop in activity suggesting that investors may be worried that prices have simply gone up too high. After riding the housing boom along with others for years, they now might be having second thoughts.” Read more from Housing Wire.
May Housing Starts Post Modest Recovery from April's Slump
Housing starts recovered in May after falling more than 9 percent in April but permitting had another lackluster month. The U.S. Census Bureau and Department of Housing and Urban Development report that residential units were started at a seasonally adjusted annual rate of 1.572 million, a 3.6 percent improvement on the revised (from 1.569 million) rate of 1.517 million in April. Starts are running 50.3 percent ahead of the rate in May 2020.

May's results were slightly lower than expected. Analysts polled by Econoday had a consensus estimate of 1.630 million. The forecasts ranged from 1.500 to 1.735 million.
Average U.S. Rental Price Hits a Two-Year High
Rental prices across large U.S. metro areas are growing at a pace unseen since the coronavirus pandemic hit last year, as vaccination rates rose and businesses reopened their doors.
In May, the national median rent rose 5.5% year over year to $1,527 per month, the highest two years, according to a report released Wednesday by Realtor.com.

The pace of growth surpassed the 3.2% rate posted in March 2020, before the onset of Covid-19 pandemic lockdowns, the report said. Read more from Realtor.com.
Mortgage Market Update
While mortgage rates remain low, purchase demand has weakened over the last couple of months, primarily due to affordability constraints stemming from high home prices. With inventory tight, the slowdown in demand has yet to impact prices, meaning the summer will likely remain a strong seller's market.
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.
Follow us on social media!
PMA Named Best Mortgage Lender of the Main Line for the Sixth Straight Year!
Thank you to all who voted!
Weekly Housing Market Monitor
Get the latest national housing market data in the Weekly Housing Monitor from the National Association of Realtors.
Recent Economic Data
(click to enlarge)
PMA & PHFA/NJHMFA can make it easier for first-time buyers to purchase a home!
0 Down VA Loans
are Easier with PMA's 
In-House Approvals!