“Everything Not Tied Down” is Selling

Key Highlights

• From Greenwich to Boston to South Florida to Fresno, sizzling hot sales
• Prices and inventories mostly rising

March Housing Market White Hot

Jonathan Miller, president of the appraiser firm Miller Samuel. said, “Everything in Greenwich CT that isn’t tied down is selling.”  Miller‘s words could be applied to multiple housing markets across the country.

Record levels all the way around the housing market…record-high levels of demand and record-low levels of inventory pushed sales prices to record-high levels in March.

Here’s the March Housing Market Recap

• National median home-sale price hit $353,000, an increase of +17% from 2020, according to Redfin.
• Sale-to-list ratio hit +100% for the first time ever.
• 42% of homes sold did so above asking price.
• Inventory dropped -29% y/y, the 20^thconsecutive month of inventory declines and the lowest inventory levels on record.
• Average days on the market (DOM) fell to record low of 25, 19 days faster than in 2020.

Is Market Overvalued?

Taylor Marr, Redfin’s lead economist, said, “Despite the intense competition and high prices we face, I still see more big gains to be made in home equity.  Fundamentals like low mortgage rates and high demand for housing are fueling the record high price gains, so I don’t believe that homes are overvalued.”

Cities with Largest Gains in Sale Volumes in March

The largest sales gains in March happened in New York City (+58%), San Jose CA (+56%), and San Francisco (+55%).  Secondary markets where both new and existing homes are flying off the shelves were Portland ME; Pueblo CO; Logan UT; and Bay City MI.

Downtown Boston experienced a sales volume jump to the highest number of Q1 sales total in 16 years, according to Miller Elliman. 

The Palm Beach housing market in Q1 2021 was “agog,” according to Darrell Hofheinz with Shiny Street, in terms of both sales activity and price escalation.

Metros that experienced a drop in sales volume included Rochester NY (-9%); Grand Rapids MI      (-9%); and Dayton OH (-7%).

Housing Supply Gains and Declines

Inventory gains were most notable in San Francisco (+34%); San Jose (+20%); Oakland (+8%) and Los Angeles (+3%).

Cities with over 50% declines in housing supply included Salt Lake City UT, Baton Rouge LA, and Allentown PA.

Greenwich CT saw its single-family listing inventory plunge nearly-50% in Q1 2021.  Not in more than 25 years has Greenwich experienced such a fast decline in supply, according to Miller Elliman.

Thanks to Redfin, Miller Elliman, Shiny Street, and HousingWire.

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