In 2021, so far, the housing market continues to be competitive for buyers resulting in higher home prices and quick-selling homes. In March 2021, the median home listing price reached an all-time high of $370,000, up 15.6% compared to last year. The large metros saw an average price gain of 12.1% compared to last year.
With the continued supply-demand imbalance, this upward pull on prices is expected to remain consistent in 2021. This pace of appreciation can decline only if either supply ramps up or demand softens. There are reasons to believe a change in the trend’s intensity is on the horizon as more inventory is expected to become available later this spring. Homes will sit on the market longer, markets will accumulate more active listings.
More listings in spring-summer buying season and higher mortgage rates, both of which can slow down the pace of home price appreciation. In the second half of this year we will see higher mortgage rates and, as they continue ticking up, which may begin to create a ceiling on the median home price growth, as monthly payments on new mortgages become less and less affordable.
The housing market has been struggling to keep up with the demand for the past decade. The pandemic has led to a surge in demand. The median sales price of a home has risen 16% from last year and they have increased even more in some regions of the country like the Northeast and West, which are both up 21% from last year. The inventory of homes for sale declined by about 30% annually in February 2021, a record drop.
A recent Zillow survey shows that millions will enter the housing market in 2021 to purchase their dream house. In fact, we have seen a huge influx of movers wanting to take advantage of larger houses and larger plots for a fraction of the price they would pay in the metro areas in general and especially the Northeast and Western United States.
This makes sense as we are experiencing such a hot market in the Southeast… not only because of the better pricing but also because of the quality of life here.
If you are one of the many Americans that are realizing that life could be better in a quieter town with open spaces and clean air to breathe, we invite you to come see what Ashe County in Western North Carolina has to offer.
Call or visit our office today and let us help you find a home away from ‘metro life’.