Highlights:
- National housing market indicators show housing market activity improving overall.
- The pandemic has seen one of the tightest housing markets in a long time.
- Home prices in the U.S. have climbed at a record pace during the pandemic, with many homes selling above their asking price.
- Buyer demand still outpaces the supply.
August 2021 Housing Market Report: What Investors Need to Know
Written by Graystone Investment Group
The U.S. housing market in August 2021 remained red-hot, with home prices skyrocketing, inventory staying tight, and buyers still outpacing available supply. If you’ve been watching the market, you know this has been one of the most competitive times in real estate history. Let’s break it all down so you can understand what’s happening and what it means for investors.
Home Prices Keep Climbing
- The typical home value in the U.S. jumped to $303,288 in July 2021, up from $278,000 in March 2021.
- Year-over-year increase: +17.7%—a record-breaking growth!
- What it means for investors: If you already own property, you’ve likely seen your equity rise fast. If you’re looking to buy, waiting might not be your best move—prices continue trending up.
Source: Zillow, Inc.
New Home Purchases on the Rise
- July 2021: 708,000 new homes sold (Up 1.0% from June).
- June 2021: 701,000 new homes sold.
- What it means for investors: Demand for new construction remains strong, but materials and labor shortages have slowed builders down, meaning fewer homes are hitting the market. If you’re flipping or developing, this is something to keep in mind.
Source: FRED, Federal Reserve Bank of St. Louis.
Housing Supply Remains Tight
The market continues to suffer from low inventory, making it a seller’s dream but a challenge for buyers.
- Total supply of homes in July 2021: 823,237 homes (down 32.3% from the previous year).
- Months’ supply: 6.2 months—meaning at the current sales rate, all homes would sell in just over six months if no new inventory was added.
- What it means for investors: This is why homes are selling so fast. If you’re looking to buy, be aggressive. If you’re selling, competition among buyers is high, which could drive up your sale price.
Sources: U.S. Census Bureau, HUD, Redfin.
Existing Home Sales Still Strong
- July 2021: 5.99 million homes sold (Up 2.0%).
- June 2021: 5.87 million homes sold.
- What it means for investors: More transactions = a busy market. Buyers are still eager to purchase despite higher prices, so selling your property in this climate could yield solid returns.
Source: FRED, Federal Reserve Bank of St. Louis.
Homes Are Selling Faster Than Ever
- Median days on market (July 2021): 20 days (down 15 days from last year).
- Fastest-moving month: June 2021—just 14 days on the market!
- What it means for investors: Whether you’re flipping, wholesaling, or renting, demand is moving properties FAST. If you’re buying, be ready to act quickly.
Source: Redfin.
Mortgage Rates Stay Low (For Now)
- 30-year fixed mortgage rates ranged between 3.02% and 2.78% from June to September 2021.
- What it means for investors: Low rates mean cheaper borrowing costs. If you’re financing, now’s a good time to lock in a rate before they climb again.
Source: FRED, Federal Reserve Bank of St. Louis.
Key Takeaways for Investors
✅ Home prices are up—great if you own, tricky if you’re buying.
✅ Inventory is still low—sellers are in control, and buyers need to act fast.
✅ Homes are selling faster than ever—expect competition.
✅ Mortgage rates are still low—a solid window to lock in long-term financing.
The market is moving fast, and as always, the best opportunities go to those who are ready. If you want to navigate this market like a pro, you need the right strategy, connections, and execution.
At Graystone Investment Group, we help investors find, finance, and manage profitable properties—even in competitive markets like this one. Want to learn how to invest smarter?
📩 Let’s talk: http://graystoneig.com/ceo
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