Pending sales were only down -2.3% in March (compared to March 2020). The average sales price increased +12.0%, a very healthy climb. However, months supply of inventory is way down again, a whopping -58.3%. This stat changed more than any other. There is only a 1.0 month supply of inventory, which is extremely low, and indicates a very strong sellers market.
Normal spring increases in sales activity, coupled with relaxing COVID-19 policies, created a very busy March real estate market as buyer demand continued largely unabated in the face of rising home prices and mortgage rates. Existing home seller and new construction activity continue to remain below levels necessary to bring the market back into balance, pointing to a busy and competitive buyer market in the coming months.
While many homebuilders are working to increase their activity, the cost of lumber and other materials and a backlogged supply chain continue to limit new home construction and have increased costs substantially. New methods of construction, including 3d printed homes, could speed construction and reduce costs in the future, but realistically are several years away from making a measurable impact in the market.
All data from Triad MLS. Report © 2021 ShowingTime.