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This Week In Real Estate – July 25, 2021

Central Oregon Real Estate - This Week In Real Estate

Nine Years Of Continuous Median Sales Price Increases.

The National Association of Realtors reported, this week in real estate, that the 23.4% June increase in median sales price was the 112th consecutive month of year-over-year gains, more than 9 years of straight increases. June also recorded a month-over-month increase in existing-home sales ending four consecutive months of declines. Below are a few newsworthy events from the third week of July that influence our business:

U.S. Home Prices Spike 23.4 Percent Annually in June.

The median existing home price for all housing types in June was $363,300, up 23.4% from June 2020 ($294,400), as every region recorded price jumps. This marks 112 straight months of year-over-year gains. “At a broad level, home prices are in no danger of a decline due to tight inventory conditions, but I do expect prices to appreciate at a slower pace by the end of the year,” said Lawrence Yun, NAR’s chief economist. “Ideally, the costs for a home would rise roughly in line with income growth, which is likely to happen in 2022 as more listings and new construction become available.” All-cash sales accounted for 23% of transactions in June, even with May, and up from 16% in June 2020. The median price in the West was $507,000, up 17.6% from June 2020. Full Story…

Existing-Home Sales Expand 1.4% in June.

Existing-home sales increased in June, snapping four consecutive months of declines, according to the National Association of Realtors. Three of the four major U.S. regions registered small month-over-month gains, while the fourth remained flat. However, all four areas notched double-digit year-over-year gains. Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums, and co-ops – grew 1.4% from May to a seasonally adjusted annual rate of 5.86 million in June. Sales climbed year-over-year, up 22.9% from a year ago (4.77 million in June 2020). “Supply has modestly improved in recent months due to more housing starts and existing homeowners listing their homes, all of which has resulted in an uptick in sales,” said Lawrence Yun, NAR’s chief economist. “Home sales continue to run at a pace above the rate seen before the pandemic.” Existing-home sales in the West rose 1.7%, registering an annual rate of 1,200,000 in June, a 23.7% jump from a year ago. Full Story…

Despite Supply-Side Issues, U.S. Housing Starts Increase in June.

According to a new report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, overall housing starts increased 6.3 percent in June 2021 to a seasonally adjusted annual rate of 1.64 million units. The June reading of 1.64 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts increased 6.3 percent to a 1.16 million seasonally adjusted annual rate. On a regional and year-to-date basis (January through June of 2021 compared to that same time frame a year ago), combined single-family and multifamily starts are 41.4 percent higher in the Northeast, 25.5 percent higher in the Midwest, 21.5 percent higher in the South and 28.0 percent higher in the West. Looking at regional permit data on a year-to-date basis, permits are 33.2 percent higher in the Northeast, 31.9 percent higher in the Midwest, 29.6 percent higher in the South, and 32.2 percent higher in the West. The count of single-family homes currently under construction is 675,000-up 32 percent compared to a year ago. Full Story…

Originally compiled & posted by Jason Waugh on the Berkshire Hathaway HomeServices Northwest Real Estate company blog.

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Mitch Darby

I am a real estate broker, architect (both licensed in the State of Oregon), and life-long Oregonian. If you are looking to buy or sell, I can help! I have Northwest Knowledge and am proud to be associated with Berkshire Hathaway HomeServices - Real Estate's Forever Brand!

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