Continuing inventory woes have hampered existing-home sales for the third consecutive month, according to the National Association of Realtors’ latest market report released on Friday. Existing-home sales declined across the country, except in the Midwest region, where sales increased 0.8 percent from March.
Total existing-home sales declined 2.7 percent month over month to a seasonally adjusted annual rate of 5.85 million. However, existing-home sales were up 33.9 percent from last April, when most of the country was in lockdown.
Due to the worsening imbalance between supply and demand, the median existing-home price increased 19.1 percent year over year to a record high of $341,600. Existing-home prices increased in every region and represented 110 consecutive months of year-over-year gains.
Although total housing inventory declined 20.5 percent annually, the market did experience a small month-over-month boost in inventory (+10.5 percent) and unsold inventory (2.1 months to 2.4 months). Average days on market declined to 17 days in April, with 88 percent of homes selling within a month.
The boosts in month-over-month inventory levels reflect would-be home sellers increasing willingness to enter the market as states reopen and legislators relax social distancing orders.
“We’ll see more inventory come to the market later this year as further COVID-19 vaccinations are administered and potential home sellers become more comfortable listing and showing their homes,” said NAR Chief Economist Lawrence Yun. “The falling number of homeowners in mortgage forbearance will also bring about more inventory.”
Realtor.com Chief Economist Danielle Hale said the impending inventory boost will lighten the load for buyers and give them more housing options, although the days of bidding wars are far from over.
Full article: K&Q Financial group