August 13, 2021 — The median sales price of single-family existing homes rose in 99% of metro areas in the second quarter of 2021 compared to one year ago. And those increases were not small – there were double-digit price gains in 94% of markets measured by the NAR. Continued low levels of housing inventory, combined with record-low mortgage rates, have caused an increase in median sales prices for existing single-family homes in all but one of 183 measured markets during the second quarter of 2021. That is according to the National Association of Realtors®’ latest quarterly report.
The median sales price of single-family existing homes rose 22.9% to $357,900, an increase of $66,800 from one year ago. All regions saw double-digit year-over-year price growth, which was led by the Northeast (21.8%), followed by the South (21.0%), West (20.9%), and Midwest (17.1%). Three of the hottest markets in the country showed price gains of more than 40% year over year: Austin (TX), Boise (ID), and Naples/Marco (FL).
“Home price gains and the accompanying housing wealth accumulation have been spectacular over the past year, but are unlikely to be repeated in 2022,” said Lawrence Yun, NAR chief economist.
“There are signs of more supply reaching the market and some tapering of demand,” he continued. “The housing market looks to move from ‘super-hot’ to ‘warm’ with markedly slower price gains.”
What this means for retirees
The report highlights what just about every person in America knows – the real estate market is hot. It is a great time to sell and a terrible moment to buy. If you are a retiree looking to step away from a home that is too large, not easily adaptable to retirement living, or in an area you don’t want to live in anymore – this is a great time to unload that home and take away your equity. Compared to even two years ago, this could be a big opportunity. But finding your next place to live might take patience and some creativity. You will probably have to pay more for a smaller home, condo, or rental. But particularly if you are downsizing or selling a home that was not easy to sell in the past, you will be ahead. If Mr. Yun’s prediction holds true, the explosive price gains of the last few years might slowly turn into a real estate market where you can find a more desirable retirement home without having to offer more than the asking price. You just might have to wait it out, time you can use to figure out where you truly want to live.
Comments? Did you sell your home recently, or are you thinking about it? Do you know what your next move is after that? Please share your thoughts in the Comments section below.