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Wenzel Select Properties Newsletter-Vol 11 Issue 10

(630) 430-4790team@wenzelselectproperties.comwww.wenzelselectproperties.com

Home Inventory Ticks Up While Home Sales Increase

For the second month in a row, existing home sales have increased, according to the National Association of Realtors (NAR). What’s more, three of the four major sales regions in the country recorded month-over-month sales gains, while the fourth remained steady. Year-over-year sales were more variable, with two regions posting gains, one posting a decline, and one remaining level.

Inventory Has Improved
The rise in home sales can be attributed in part to improving inventory levels, which, according to Lawrence Yun, chief economist for NAR, will help ease the intensity of multiple offers. “Much of the home sales growth is still occurring in the upper-end markets,” he added, “while the mid- to lower-tier areas aren’t seeing as much growth because there are still too few starter homes available.” By the end of July, total housing inventory across the country climbed to 1.32 million units, up 7.3% month over month but down 12% year over year. At the current sales pace, unsold inventory would supply the market for only 2.6 months.

Homes Are Selling Quickly at Higher Prices
For the past 113 months in a row, the median-existing home price has climbed. Every region in the country saw gains in housing prices. The average property remained available for sale for just 17 days in July, unchanged from a month earlier; in comparison, homes remained on the market for 22 days in July 2020. Of all the homes sold in July 2021, 89% were purchased in under one month. While Yun doesn’t believe home prices will be dropping in the months ahead, he does foresee a leveling off as inventory levels improve. “In the meantime,” said Yun, “some prospective buyers who are priced out are raising the demand for rental homes and thereby pushing up the rental rates.”

Who’s Buying?
First-time buyers accounted for 30% of all home sales in July, down from 31% a month earlier and 34% a year earlier. Twenty-three percent of all July’s transactions were all cash; individual investors and second-home buyers—two groups who account for the majority of cash sales—were responsible for 15% of all home transactions, up from 14% a month earlier and unchanged from a year earlier.

Regional Breakdown

Northeast - Existing-home sales annual rate of 740,000; unchanged from June 2021 but an increase of 12.1% from July 2020. The median sales price increased 23.6% from July 2020.

Midwest - Existing-home sales annual rate of 1.38 million; an increase of 3.8% from June 2021 but a decrease of 1.4% from July 2020. The median sales price increased 13.1% from July 2020.

South - Existing-home sales annual rate of 2.63 million; an increase of 1.2% from June 2021 and 1.2% from July 2020. The median sales price increased 14.4% from July 2020.

West - Existing-home sales annual rate of 1.24 million; an increase of 3.3% from June 2021 but unchanged from July 2020. The median sales price increased 12.5% from July 2020.

Managing Broker: Lisa Wenzel - 630 430-4797

Broker: Melissa Mathis – 630 392-5171

Broker: Freddy Wenzel - 630 750-4797

Broker: Danny Reed - 708 703-4653

Broker: Kristine Emmel - 847 489-8965

Broker: Catherine Lopez - 630 981-4572

Broker: Michaela Valle – 630 946-4269

Broker: April Stary – 630 962-4820

Broker: Nina Rodriguez – 224 587-0780

Broker: Eumeka Aguado - 847 513-4433

Harmanpreet Singh - 630 440-1578

Anthony Abbatacola – 630 310-7493
Team Wenzel, 1120 Norfolk Street, Downers Grove IL 60516
The material in this publication is provided for your informational purpose only and is not intended to substitute professional advice. If your property is currently listed with a Real Estate Broker, this publication is not intended as a solicitation.



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