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The COVID-19 pandemic and the resulting push for remote work entirely restructured the home buying process for millions of Americans and led to a record breaking year for the housing market in 2021. Over the past year, home-sale prices hit the highest median of all time, the supply of homes for sale dropped to an all-time low, record demand for second homes was reported across the country, and more Americans migrated than ever before, according to Redfin.
Remote work, low mortgage rates, materials shortages, and major wealth inequality have allowed affluent Americans to move quickly up the real estate ladder while less wealthy demographics struggle to find affordable housing. In June 2021, the national median home-sale price hit $386,000, reaching an all-time high after rising 24.4% year-over-year. Housing supply, however, dropped 23% year-over-year and now sits at an all-time low.
#1) The typical U.S. home sold for nearly $400,000
The national median home-sale price hit $386,000 in June, an all-time high and up 24.4% year over year. The median sale price may hit another all-time high before the end of the year. U.S. home prices have been growing by double digits all year, thanks to low inventory and high demand. Prices are much higher than they were pre-pandemic in just about every part of the country.
#2) Home supply dropped to its lowest level in history
There were just 1.38 million homes for sale in June on a seasonally adjusted basis. That’s an all-time low and down 23% year over year. The U.S. is in a housing-supply shortage for a combination of reasons: A lack of new construction, surging demand from buyers and homeowners taking advantage of low mortgage rates to refinance rather than sell, to name a few.
