The real estate market continued to post unprecedented numbers as spring marches on with significant increases in total sold dollar volume, median price, and units sold. While the percentage increases year-over-year are staggering, the gains are moderated by the fact that May of 2020 was still deep in the throes of pandemic fear and government-wide lockdowns. It is more telling to look at the month-over-month numbers to gauge true trends in this market since pandemic-related conditions are much-improved across the region.
The market posted a more than 67% year-over-year gain in sold dollar volume going from approximately $218 million in May of last year to more than $365.5 million in May of this year. The month-over-month gain was still significant but a more modest 27% increase from April of 2021. Median sold price was up a whopping 15% from last May, coming in at $390,000 but a mere 1.5% over last month, showing that already-elevated prices are staying high. Units sold were up to 889 homes transacted this May compared to 621 in 2020, a more than 43% increase. Compared to last month, sales were still up a significant 24%.
“What a crazy market we are living today!” comments FAAR Board of Director Pia Contreras-Sanchez. “May for me is kind of the culmination of the spring market or maybe a ” Graduation”. By May, the clients I was working with already understood the fight we had to fight, and we proudly presented our bests and the most creative offers we possibly could. The beauty of the business is that every day is a constant learning process and a challenge to adapt. The numbers are working in our favor… for buyers, rates are still low and for sellers, prices remain high.”
Days on market, the time it takes from when a listing enters the market until it receives a ratified contract and is removed from active status on the multiple listing service, fell nearly 62% with houses averaging a scant 11 days on the market this May compared to the also very low 29 days last year. A full 83% of homes on the market were sold in less than 10 days, demonstrating how quickly decisions need to be made in this market.
Not unexpectedly, inventory across the region remains at historic lows. In May of 2020, there were 1,964 homes on the market. In May of 2021, there were just 573 homes for sale, representing a nearly 41% year-over-year decline. However, new listings coming onto the market showed a sizeable increase again this month with 1,200 new listings coming onto the market, a nearly 49% increase from last May. For the second month in a row, the market has beaten the 5-year average for new listings so it is not entirely accurate to state that our market is suffering from a supply shortage. Homes are coming onto the market in record numbers, they are just being snatched up by very strong buyer demand. New pending sales for the month of May are up 10% from last year and also beating the 5-year average, indicating that the pace of sales will probably not slow in June.
