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August 2021 Housing Market Trends Report – News

  • The national inventory of active listings declined by 25.8% over last year, while the total inventory of unsold homes, including pending listings, declined by 13.8%. The inventory of active listings is still down 52.8% compared to 2019.
  • Newly listed homes on the market are up 4.3% nationally compared to a year ago, and 5.1% higher for large metros over the past year. Sellers are still listing at rates 8.6% lower than typical 2017 to 2019 levels. 
  • The August national median listing price for active listings was $380,000, up 8.6% compared to last year and up 19.6% compared to 2019. Large metros saw an average price gain of 3.5% compared to last year.
  • Nationally, the typical home spent 39 days on the market in August, much less than the 56 days during the same month in 2020 and 63 days which was typical in the 2017 to 2019 period.®’s August housing data release reveals that the housing market is continuing to normalize as newly listed homes skew smaller and more affordable and sellers are beginning to price more competitively through an increased share in price reductions. However, homes are still selling more than two weeks faster than last year.

Newly Listed Inventory Improves as More Small Homes Are Listed than Last Year

Nationally, the inventory of homes actively for sale in August decreased by 25.8% over the past year, a lower rate of decline compared to the 33.5% drop in July. A deceleration in the decline of inventory means the market is heading in an encouraging direction, but active inventory still remains historically low. This decline amounted to 223,000 fewer homes actively for sale on a typical day in August compared to the previous year. The total number of unsold homes nationwide–a metric that includes active listings and listings in various stages of the selling process that are not yet sold– is down 13.8% percent from August 2020. 

Active Home Listing Inventory

In August, newly listed homes grew by 4.3% on a year-over-year basis but declined by 2.8% compared to July, following typical seasonal patterns. Newly listed homes are still down 8.6% from the typical rate of newly listed homes in 2017 to 2019.

Newly Listed Homes

As we mentioned last month, these newly listed homes tend to be smaller in size than last year, shifting the mix of inventory toward smaller homes compared to last year. Looking at the single family home category alone, the share of homes having between 750 and 1,750 square feet increased from 30.6% in August 2020 to 37.0% in August 2021, while the inventory of homes having between 3,000 and 6,000 square feet decreased from 23.9% to 19.3%.

Inventory of Smaller Homes

This increase in the share of smaller is present in most large metros across the country but is most pronounced in the Midwest.

Inventory of Small Homes by Metro

The inventory of homes actively for sale in the 50 largest U.S. metros overall decreased by 20.7% over last year in August, a large slowdown in the rate of decline compared to last month’s 28.1% decrease. Regionally, the inventory of homes in southern metros is still showing the largest year-over-year decline (-30.2%), but on average, southern metros have the second largest growth rate in newly listed homes (+6.1% year-over-year) after the Midwest. 

Markets which are seeing the largest year-over-year growth in newly listed homes include Columbus (+25.6%), Louisville (+22.8%), and Cleveland (+21.6%). Markets which are still seeing a decline in newly listed homes compared to last year include Raleigh (-18.8%), Nashville (-18.5%), and Hartford (-12.3%).

Homes Continue to Sell 17 Days Faster Than Last Year

The typical home spent 39 days on the market this August, 17 days less than last year. Homes are still being quickly snapped up as demand remains elevated, but the time a typical listing spends on the market is beginning to conform to seasonal norms. While last year the time on market continued to decline until October, this year, time on market in August increased over July, following a more typical seasonal trend.  

In the 50 largest U.S. metros, the typical home spent 33 days on the market, and homes spent 12 days less on the market, on average, compared to last August. Among these 50 largest metros, the time a typical property spends on the market has decreased most in large metros in the South (-17 days), followed by the Midwest (-11 days), West (-8 days), and Northeast (-7 days). 

Among larger metropolitan areas, homes saw the greatest yearly decline in time spent on market in Miami (-34 days), Jacksonville (-26 days) and Raleigh (-24 days). New York (+5 days), San Diego (+4 days) and Washington, DC (+3 days) were the only metros to see time on market increase but this is a signal that for some metros the fall housing market will be cooler than the peak of activity seen last year.  

Home Inventory Days on Market

Price Reductions Increasing but Approaching Normal Levels

The median national home price for active listings declined slightly from $385,000 in July to $380,000 in August. The median listing price grew by 8.6% over last year, lower than last month’s growth rate of 10.3%. This marks the fourth month in a row when the annual growth rate has decreased and the first month since July 2020 when the annual growth rate dipped below double-digits. As we noted previously, while median listing price growth is slowing down, this trend reflects a change in the mix of inventory available for sale this past month compared to last year, with more small homes available for sale this year. 

Median Home Listing Price

However, the share of homes which have had their prices reduced in August has surpassed last year’s share and is beginning to approach 2016 to 2019 levels. In August, 17.3% of active home listings had their price reduced, up 0.7% from the previous year. While still within normal ranges, this could indicate that some sellers are adjusting prices to compete more than they have over the past year and a half.

Share of Home Price Reductions

Active listing prices in the nation’s largest metros grew by an average of 3.5% compared to last year, lower than last month’s rate of 3.9%. Price growth in the nation’s largest metros is cooling slightly faster than other areas across the country, but the primary reason why can again be attributed to new inventory bringing relatively smaller homes to the market.  

Austin (+36.0%), Las Vegas (+22.9%), and Tampa (+20.0%), posted the highest year-over-year median list price growth in August, while Hartford (+5.7%), Virginia Beach (+5.0%) and Washington, DC (+4.9%) saw the greatest increase in their share of price reductions compared to last year.

August 2021 Regional Statistics (50 Largest Metro Combined Average)

RegionActive Listing Count YoYActive Listing Count vs 2019New Listing Count YoYNew Listing Count vs 2019Median Listing Price YoYMedian Listing Price vs 2019Median Days on Market Y-YMedian Days on Market vs 2019Price Reduced Share Y-YPrice Reduced Share vs 2019
Midwest-8.0%-48.1%12.5%-8.0%-5.9%4.3%-11 days-14 days+1.0%-5.9%
Northeast-16.2%-46.9%-1.2%-7.9%-1.4%10.5%-7 days-19 days+0.8%-6.7%
South-30.2%-57.6%6.1%-9.5%7.4%14.3%-17 days-24 days-0.1%-7.5%
West-19.2%-48.0%0.6%-2.4%9.3%18.7%-8 days-14 days-1.1%-10.7%

August 2021 Housing Overview by Top 50 Largest Metros 

MetroMedian Listing PriceMedian Listing Price YoYActive Listing Count YoYNew Listing Count YoYMedian Days on MarketMedian Days on Market Y-YPrice Reduced SharePrice Reduced Share Y-Y
Atlanta-Sandy Springs-Roswell, Ga.$398,00012.2%-32.4%2.4%34-1316.3%-1.8%
Austin-Round Rock, Texas$544,00036.0%-28.1%19.8%23-2023.8%4.1%
Baltimore-Columbia-Towson, Md.$335,000-4.3%-5.3%20.2%34-822.2%4.9%
Birmingham-Hoover, Ala.$273,0000.1%-25.7%9.3%38-1414.8%-1.7%
Boston-Cambridge-Newton, Mass.-N.H.$659,000-2.9%-21.2%-9.0%31-713.7%-2.2%
Buffalo-Cheektowaga-Niagara Falls, N.Y.$229,0001.8%-5.1%0.3%33-1115.2%-1.1%
Charlotte-Concord-Gastonia, N.C.-S.C.$385,0004.1%-29.2%6.0%28-1519.0%1.0%
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.$341,000-2.3%-16.8%-4.9%36-720.9%0.6%
Cincinnati, Ohio-Ky.-Ind.$320,000-2.3%-3.2%13.9%31-1320.2%-0.7%
Cleveland-Elyria, Ohio$200,000-14.0%0.3%21.6%39-1123.1%0.1%
Columbus, Ohio$300,000-5.2%2.0%25.6%21-1522.2%-0.1%
Dallas-Fort Worth-Arlington, Texas$396,00010.1%-37.3%-0.7%31-1521.8%-3.6%
Denver-Aurora-Lakewood, Colo.$600,00011.2%-34.0%-5.9%22-1420.9%-3.0%
Detroit-Warren-Dearborn, Mich.$268,000-4.1%-15.5%7.4%24-1319.9%0.3%
Hartford-West Hartford-East Hartford, Conn.$330,00010.4%-55.6%-12.3%32-1217.2%5.7%
Houston-The Woodlands-Sugar Land, Texas$364,00010.5%-25.2%4.4%37-1422.6%0.9%
Indianapolis-Carmel-Anderson, Ind.$279,000-6.7%-23.0%14.5%35-1222.4%-2.9%
Jacksonville, Fla.$360,00012.3%-43.2%2.8%37-2620.6%0.2%
Kansas City, Mo.-Kan.$322,000-6.5%-7.0%15.7%39-1321.2%3.0%
Las Vegas-Henderson-Paradise, Nev.$422,00022.9%-34.6%1.9%27-1517.1%-1.4%
Los Angeles-Long Beach-Anaheim, Calif.$975,000-2.5%-17.6%-3.4%43-811.6%-1.7%
Louisville/Jefferson County, Ky.-Ind.$265,000-7.0%-6.0%22.8%27-1222.9%3.0%
Memphis, Tenn.-Miss.-Ark.$250,000-5.8%-17.7%19.5%37-1116.2%-1.9%
Miami-Fort Lauderdale-West Palm Beach, Fla.$456,00012.5%-46.6%-10.2%59-3411.7%-1.6%
Milwaukee-Waukesha-West Allis, Wis.$290,000-16.2%4.6%17.9%35-924.2%4.9%
Minneapolis-St. Paul-Bloomington, Minn.-Wis.$355,000-1.4%-15.3%-1.7%29-717.9%3.7%
Nashville-Davidson–Murfreesboro–Franklin, Tenn.$440,00011.1%-51.3%-18.5%18-1416.7%-0.7%
New Orleans-Metairie, La.$339,0004.8%-6.4%19.9%46-2122.5%1.5%
New York-Newark-Jersey City, N.Y.-N.J.-Pa.$603,000-2.7%-12.9%-9.7%58510.3%-2.5%
Oklahoma City, Okla.$280,0003.6%-28.2%12.4%37-1320.0%-1.9%
Orlando-Kissimmee-Sanford, Fla.$375,00015.4%-47.7%-2.3%37-2119.3%-2.7%
Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.$321,000-6.4%0.9%13.3%43-320.5%2.1%
Phoenix-Mesa-Scottsdale, Ariz.$475,00014.5%-16.7%6.3%30-1021.4%2.3%
Pittsburgh, Pa.$233,000-7.0%-14.7%4.6%42-1224.0%1.7%
Portland-Vancouver-Hillsboro, Ore.-Wash.$558,00011.6%-23.8%-3.1%34-928.6%-3.5%
Providence-Warwick, R.I.-Mass.$429,0000.1%-14.5%8.1%31-1513.3%2.0%
Raleigh, N.C.$425,00010.0%-61.7%-18.8%19-2411.6%-5.1%
Richmond, Va.$350,000-2.2%-19.7%12.1%38-1416.6%1.1%
Riverside-San Bernardino-Ontario, Calif.$540,00017.6%-7.6%8.4%33-1314.6%3.4%
Rochester, N.Y.$228,000-7.1%-22.7%-1.0%19-1011.9%-2.3%
Sacramento–Roseville–Arden-Arcade, Calif.$589,00011.6%-1.0%7.2%29-919.1%2.5%
San Antonio-New Braunfels, Texas$350,00011.4%-31.2%9.2%34-1722.5%0.8%
San Diego-Carlsbad, Calif.$830,0006.5%4.5%-6.1%39413.2%-1.1%
San Francisco-Oakland-Hayward, Calif.$993,000-3.2%-22.4%-3.4%30-611.1%-3.9%
San Jose-Sunnyvale-Santa Clara, Calif.$1,250,0004.2%-20.3%1.6%30-311.8%-6.2%
Seattle-Tacoma-Bellevue, Wash.$675,0008.0%-37.2%2.7%29-514.3%0.1%
St. Louis, Mo.-Ill.$250,0000.0%-15.2%14.1%42-1718.4%-0.2%
Tampa-St. Petersburg-Clearwater, Fla.$360,00020.0%-40.7%8.6%34-1820.7%-2.6%
Virginia Beach-Norfolk-Newport News, Va.-N.C.$310,000-7.5%-21.3%3.7%26-1515.1%5.0%
Washington-Arlington-Alexandria, DC-Va.-Md.-W. Va.$503,000-4.2%17.1%9.7%33320.0%4.9%

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Sabrina Speianu, Danielle HaleSabrina Speianu, Danielle HaleDanielle Hale Original Article Appeared at : Source

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