New York Tri-State Area

New York City’s Tri-State area offers buyers just that; more floor space while remaining closely linked to the city. However, it comes at a high price. Between June 2020 and June 2021, the historically expensive Bergen County and Essex County in northern New Jersey saw the median home sales price climb to $655K and $605K, an increase of 20.4% and 16.3%, respectively. Buyers with thinner wallets looked further afield to Sussex County, where the median sales price in June 2021 was $365K, a staggering year-over-year increase of 37.7%.

And in Connecticut, almost half of all homes are selling for over asking price. That’s an impressive statistic, considering the median home in lower Fairfield County, the main “bedroom community,” goes for $811K.

Washington, D.C. Area

230 miles south of New York City is Washington, D.C., another top-tier city that attracts people of all age groups and nationalities. The “DMV,” a local term short for D.C., Maryland, and Virginia, has a thriving arts and restaurant culture, and the real estate market is just as action-packed as the city itself.

In D.C.-proper, the median price of a house, row house, or condo that sold in June 2021 was $700K, the highest median selling price for the District on record, according to WTOP. In June 2021, Montgomery County (Maryland) singlefamily home prices were up 18.2% compared to last year, selling for a median price of $893K. On average, homes in Montgomery County sold after nine days on the market compared to 34 days last year.

Across the Potomac in Northern Virginia, the average home prices rose 14.6% from June 2020 to June 2021, according to the Northern Virginia Association of Realtors. Sales have gone up 48.4% in the last year, and the average home sells for just over $740K.

Mid-West Area

Turning an eye to the Midwest, the market is also highly competitive in the nine counties surrounding Chicago. According to Illinois Realtors, there were 10,078 homes sold in June 2020 in the Chicago Metro area, and those properties were on the market for an average of 43 days. In June 2021, there were 15,402 homes sold, and those only spent an average of 22 days on the market. The median sale price in the area has increased by over 20% in a single year to $319K, and inventory is short; down from over 31,000 homes for sale last June to about 20,000 homes available in June 2021.

Sellers in these desirable markets might be surprised by the age of prospective buyers, as increasing numbers of Millennials begin to enter the real estate game. Now that working from home is normalized, young people are ditching the city and moving to the suburbs. The oldest Millennials are turning 40, have young families and a well-established career, and are likely hoping to “level up” when it comes to their home. After years of renting or settling for less-than-ideal locations to cut costs, wealthier older Millennials are looking for their dream homes and are willing to pay for them.

In fact, first-time homebuyers in 2021 are more likely to pay a full 20% down payment than they were last year, according to the National Association of Realtors. The 2008 recession especially impacted older Millennials, and now that they finally have the resources to buy instead of rent, they are anxious to make the next move.

The facts are all there: it’s a seller’s market. Year-over-year appreciation is well into the double digits in many regions, and even then, buyers are happily paying over asking price to close on a new home quickly. Although more homes will come on the market as the pandemic eases, prices will stay high. So, if you’ve been considering selling your home, now is your chance.