It was the biggest monthly gain ever reported by the National Association of Realtors (NAR) in the nearly two decades since the association began tracking the data in 2001.
“This has been a spectacular recovery for contract signings, and goes to show the resiliency of American consumers and their evergreen desire for homeownership,” NAR Chief Economist Lawrence Yun said in a statement. “This bounce back also speaks to how the housing sector could lead the way for a broader economic recovery.”
“More listings are continuously appearing as the economy reopens, helping with inventory choices,” Yun said. “Still, more home construction is needed to counter the persistent underproduction of homes over the past decade.”
Homebuilders are increasingly pressured to put quality housing inventory on the market. While in theory, this is a wonderful problem to have for builders (demand outweighing supply), it does put a strain on the labor market that was struggling even pre-covid. The average age in the home building industry is increasing, with younger students being coaxed away from trade schools and into 4-year colleges or other programs. It will be interesting to watch what happens with these industries as the ripples of covid hit nearly every aspect of our economy
-The Altered Properties Team