June (MidYear) 2021 Real Estate Market Update

As more individuals and families have become vaccinated and resumed more normal leisure summer activities or vacations, real estate markets have seen the pace of sales slow over the past several months as we enter ” a new phase of the housing market” said 
Redfin Chief Economist Daryl Fairweather.  Prices have increased nationally for approximately 112 months and risen beyond what many homebuyers can afford.  Prices will stabilize, the experts feel, as more homeowners list their homes for sale feeling that now is the
best time to sell for top dollar.  The NY Metro area was one of only two of the 85 largest metros that showed a year – over- year increase in the number of seasonally adjusted active listings of homes for sale of (+1%). 

Agents in a recent Inman News update reported that properties continue to move quickly in lower price points, but many also say the high-end luxury market is slowing down.  It is noted that many in the industry feel that as rents continue to rise throughout the year, the focus
on home ownership will “rev back up”.  

Freddie Mac projections are for home price growth to be 12.1% for 2021 followed by a more normalized growth of 5.3% for 2022.  

Lawrence Yun, Chief Economist for NAR, looked at all the indicators and said home sale experts remain optimistic about what is predicted for the market for the second half of 2021.  Although higher mortgage interest rates will help slow the pace of sales and moderate price growth, the housing market activity over all will remain active.

Queens inventory of homes for sale is averaging 4.8 months for sale – below the six months point which is considered a balanced market and favoring sellers.   Nassau and Suffolk Counties continue to have shortages of homes for sale with 2.3 and 1.9 months of inventory of homes for sale respectively. As more sellers feel ready to make a move we will see the inventory levels increase and make purchasing a home a little less competitive.  Each location and type of property should be evaluated separately as values vary for a variety of reasons and all, of course, changing constantly.  
As this overview points out, home price appreciation will continue but price growth will likely slow.  However, waiting for rates or home prices to fall may not be wise!  

Reach us for the latest on what’s going on in your neighborhood!  The Keit Team @ Keller Williams Realty Landmark 917-887-4924 www.Keitteam.com