The Census Bureau and HUD reported a 4.3% increase in January for new single-family home sales to a 923,000 seasonally adjusted annual rate. January sales overall saw a rate of 19.3% higher than January 2020.
The increase comes from the current housing demand as homeowners are still spending the majority of their time in their homes. Lower interest rates still also play a part but according to data gathered, Housing affordability headwinds will increase in 2021, due to price growth and mortgage rates trending higher.
As for inventory, it is still lagging behind. In January sales-adjusted inventory levels were at a 4 months’ supply. January 2021 saw a 5.5% lower increase in count than a year ago. For new home inventory that has not started yet has increased 45% over the last year from 56,000 to 81,000.
The higher cost for building materials has caused a rise in housing affordability coming into 2021. The media sales price at the beginning of the year saw a 5.3% gain for just a year ago to $346,000.
If you are in the market are considering purchasing a home, now is a good time before prices and mortgage rates rise. A smart move is to contact a Realtor in your area who can help you find the right home for you.