Over the past year, the real estate market saw several housing records hit a new level. Many of these are attributed to the strange and unexpected changes that were driven by the pandemic and how it had an impact on several areas of the economy and daily life.
Here are 10 of the housing records that hit a new number in 2021 according to research conducted by Redfin.
The average home sold for almost $400,000
The national median home sale price had an all-time high. The number as of June 2021 was an astounding $386,000 which is an increase of 24.4% from the previous year. And those numbers are not currently the all-time high. 2021 hit another record towards the end of the year due to double digit percentage increases.
Home supply drops to its lowest level in history
The all-time lowest number for home inventory dropped 23% year over year in 2021. In June 2021 it was reported that just 1.3 million homes were listed for sale. This housing supply shortage is attributed to a combination of a very small number of new construction starts and a surge in demand from homebuyers hoping to take advantage of low mortgage rates also coupled with homeowners taking advantage of refinancing instead of selling.
The average home sold in 15 days or less
In a typical real estate market pre-pandemic, many could expect a home to sell in an average of about 39 days. This number drastically reduced to about 15 days in 2021. The speed of home sales is said to be partly because of the supply limitations and the speed at which buyers moved to be able to secure a home.
60% of homes came off the market in under 14 days
61.4% of homes went into a contract agreement within two weeks of officially being listed on the MLS. This is an all-time high number, not a year-over-year number.
Mortgage rates dropped as low as 2.65%
For the average 30-year fixed traditional mortgage the average interest rate was a low of 2.65% at the end of January 2021. These hard-to-believe interest rates were a big driving factor in many areas of why real estate saw such a boom over the last few years.
Investors accounted for almost one and five of all home sales in the country
There was an increased interest of real estate investors purchasing homes. About 18.2% of homes sold in the third quarter of 2021 were real estate investment purchases. This number is a record high from the 11.2% from the year previous. The total dollar amount of real estate investors purchasing homes was $63.6 billion worth of real estate up from $35.7 billion from 2020.
The demand for second homes almost doubled since pre-pandemic times
The home buyer demand for second homes was said to have been up 91% from levels before the pandemic began according to Numbers in January 2021 marking an all-time record growth. This demand for vacation homes is said to be due to the high number of Americans working remotely and continuing to do so.
About 1/3 of Americans relocated out of metro areas
Another real estate trend said to be due to the rise in remote work was that more people sought out homes in less populated areas as they no longer had to commute to work. More people sought out the opportunity to have private outdoor space and more home for their money.
The average luxury home sold for 25% more than the previous year
Across the country, the sale price of luxury homes increased 25.8% in year-over-year numbers. The average price of a luxury home in the US, for the second quarter of 2021, came in at $1,025,000 which was record price growth. Luxury home price growth is said to have outpaced allof the affordable and mid-level housing market which is partly attributed to many Americans reaping benefits from a strong stock market and higher gains in Home equity.
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Posted by Guy Amato on
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