Strong existing-home sales and record-high pending home sales in August indicate no homebuying slowdown in fall, NAR Chief Economist Lawrence Yun says in his latest monthly report.
The striking market turnaround since the early days of the coronavirus pandemic has brought a resurgence in bidding wars and proved housing’s resilience in an unusual and volatile year, Yun adds.
But a mix of surging buyer demand and low inventory puts the industry in uncharted territory.
The national median home price has soared to an all-time high of $300,000, threatening to “choke off” first-time buyers from the market and depress the national homeownership rate, Yun says.
More homebuilding is necessary to relieve some of the market pressures.
New-home sales hit more than a million year to date in September, an encouraging sign.
However, lumber shortages are pushing up new-home prices an average of $14,000 since April.
