Existing-home sales continue to slide
Existing-home sales fell 0.4% in April to a seasonally adjusted rate of 5.19 million units, the National Association of Realtors (NAR) reported.
Total existing-home sales include completed transactions of single-family homes, townhomes, condos and co-ops. Total sales are down 4.4% from a year ago and a rate 5.43 million in April 2018.
Last month, the NAR reported that existing-home sales fell 4.9% in March to a seasonally adjusted rate of 5.21 million units.
Single-family home sales were at a seasonally adjusted annual rate of 4.62 million in April, down from 4.67 million in March and down 4% from 4.81 million a year ago. The median existing single-family home price was $269,300 in April, up 3.7% from April 2018.
Existing condominium and co-op sales were at a seasonally adjusted annual rate of 570,000 units in April, up 5.6% from the prior month and down 8.1% from a year ago. The median existing condo price was $251,000 in April, which is up 3.4% from a year ago.
Despite the falloff, NAR Chief Economist Lawrence Yun expects moderate growth on the near horizon.
“First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions,” Yun said. “Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales.”
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 4.14% in April from 4.27% in March.
The median existing-home price for all housing types in April was $267,300, up 3.6% from April 2018 and a median price of $257,900. April’s price increase marks the 86th straight month of year-over-year gains.
Total housing inventory at the end of April increased to 1.83 million, up from 1.67 million existing homes available for sale in March and a 1.7% increase from 1.8 million a year ago. Unsold inventory is at a 4.2-month supply at the current sales pace, up from 3.8 months in March and up from 4 months in April 2018.
“We see that the inventory totals have steadily improved, and will provide more choices for those looking to buy a home,” Yun said.
Yun also noted that that sellers should realize that price growth has moderated. “When placing their home on the market, home sellers need to be very realistic and aware of the current conditions.”
Yun says that college student debt continues to hinder millennial homebuyers. “Given the record high job openings in the construction sector, some may want to take a gap year to work there and save, and thereby lessen the student debt burden.”
First-time buyers were responsible for 32% of sales in April, down from the 33% reported last month and one year ago.
Regionally, April existing-home sales numbers in the Northeast decreased 4.5% to an annual rate of 640,000, 4.5% below a year ago. In the Midwest, existing-home sales saw relatively no percentage change from the month prior, as the annual rate remained 1.17 million, which is 7.9% below April 2018 levels.
Existing-home sales in the South dropped 0.4% to an annual rate of 2.27 million in April, down 1.7% from a year ago. In the West, sales grew 1.8% to an annual rate of 1.11 million in April, 5.9% below a year ago.
The NAR said the “hottest” metro markets in April were Boston-Cambridge-Newton, Mass.; Lafayette-West Lafayette, Ind.; Spokane-Spokane Valley, Wash.; Columbus, Ohio; and Sacramento--Roseville--Arden-Arcade, Calif.
“I think the market had a bit of a slow start in the Fall, but Realtors all over the country have been telling me that April was a nice rebound. We’re hopeful and expect that this will continue heading into the summer,” said NAR President John Smaby. “Homes over the last month sold quickly, which is not only a win-win for buyers and sellers, but it’s also great for the real estate industry.”
Properties were on the market for an average of 24 days in April, down from 36 days in March and down from 26 days a year ago. About 53% of homes sold in April were on the market for less than a month.
Total existing-home sales include completed transactions of single-family homes, townhomes, condos and co-ops. Total sales are down 4.4% from a year ago and a rate 5.43 million in April 2018.
Last month, the NAR reported that existing-home sales fell 4.9% in March to a seasonally adjusted rate of 5.21 million units.
Single-family home sales were at a seasonally adjusted annual rate of 4.62 million in April, down from 4.67 million in March and down 4% from 4.81 million a year ago. The median existing single-family home price was $269,300 in April, up 3.7% from April 2018.
Existing condominium and co-op sales were at a seasonally adjusted annual rate of 570,000 units in April, up 5.6% from the prior month and down 8.1% from a year ago. The median existing condo price was $251,000 in April, which is up 3.4% from a year ago.
Despite the falloff, NAR Chief Economist Lawrence Yun expects moderate growth on the near horizon.
“First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions,” Yun said. “Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales.”
According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage decreased to 4.14% in April from 4.27% in March.
The median existing-home price for all housing types in April was $267,300, up 3.6% from April 2018 and a median price of $257,900. April’s price increase marks the 86th straight month of year-over-year gains.
Total housing inventory at the end of April increased to 1.83 million, up from 1.67 million existing homes available for sale in March and a 1.7% increase from 1.8 million a year ago. Unsold inventory is at a 4.2-month supply at the current sales pace, up from 3.8 months in March and up from 4 months in April 2018.
“We see that the inventory totals have steadily improved, and will provide more choices for those looking to buy a home,” Yun said.
Yun also noted that that sellers should realize that price growth has moderated. “When placing their home on the market, home sellers need to be very realistic and aware of the current conditions.”
Yun says that college student debt continues to hinder millennial homebuyers. “Given the record high job openings in the construction sector, some may want to take a gap year to work there and save, and thereby lessen the student debt burden.”
First-time buyers were responsible for 32% of sales in April, down from the 33% reported last month and one year ago.
Regionally, April existing-home sales numbers in the Northeast decreased 4.5% to an annual rate of 640,000, 4.5% below a year ago. In the Midwest, existing-home sales saw relatively no percentage change from the month prior, as the annual rate remained 1.17 million, which is 7.9% below April 2018 levels.
Existing-home sales in the South dropped 0.4% to an annual rate of 2.27 million in April, down 1.7% from a year ago. In the West, sales grew 1.8% to an annual rate of 1.11 million in April, 5.9% below a year ago.
The NAR said the “hottest” metro markets in April were Boston-Cambridge-Newton, Mass.; Lafayette-West Lafayette, Ind.; Spokane-Spokane Valley, Wash.; Columbus, Ohio; and Sacramento--Roseville--Arden-Arcade, Calif.
“I think the market had a bit of a slow start in the Fall, but Realtors all over the country have been telling me that April was a nice rebound. We’re hopeful and expect that this will continue heading into the summer,” said NAR President John Smaby. “Homes over the last month sold quickly, which is not only a win-win for buyers and sellers, but it’s also great for the real estate industry.”
Properties were on the market for an average of 24 days in April, down from 36 days in March and down from 26 days a year ago. About 53% of homes sold in April were on the market for less than a month.