According to the National Association of Realtors, the average price of an existing home in June was about $ 363,300, up 23.4% from last year. The Fannie Mae Homebuyer Sentiment Index for June showed that 77% of consumers believe now is a good time to sell, while 64% believe it is a bad time to shop.
“This attitude is likely to continue until the end of 2021, because the supply of homes for sale will not come close to meeting demand,” Lewis added. “When it comes to home sellers, you might be thinking, ‘Well, good for you. I think you can easily move on. ” But most home sellers also buy when they retrofit, downsize, or relocate. It is pleasant to sell in this market, but it is not good to buy ”.
Despite the fact that construction has intensified over the past few months, there are still not enough houses to meet the needs of the population. Sam Hater, Freddie Mac’s chief economist, estimates that there were 3.8 million housing units short of the housing market at the end of 2020.
Lewis pointed to a shortage and rising prices for lumber and other materials as other limiting factors, as well as a shortage of computer chips that control appliances. An analysis by the National Association of Home Builders (NAHB) found that skyrocketing lumber prices increased the market value of a single-family home by about $ 35,875 and nearly $ 13,000 over the average apartment building price.