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.
New listings decreased 5.3 percent for residential homes but increased 13.1 percent for townhouse/condo homes. Pending sales increased 11.4 percent for residential homes and 57.5 percent for townhouse/condo homes. Inventory decreased 46.2 percent for residential homes and 26.7 percent for townhouse/condo homes.
Median sales price increased 13.5 percent to $247,500 for residential homes and 1.1 percent to $179,000 for townhouse/condo homes. Days on market decreased 29.2 percent for residential homes but increased 2.3 percent for townhouse/condo homes. Months supply of inventory decreased 50 percent for residential homes and 33.3 percent for townhouse/condo homes.
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 several years away from making a measurable impact in the market.