Existing-home sales posted the first
rise of the year in April as inventory levels of for-sale homes also
showed improvement, the National Association of REALTORS® reports.
Existing-home sales rose 1.3 percent in April compared to March,
reaching a seasonally adjusted annual rate of 4.65 million last month.
Still, home sales are 6.8 percent below the 4.99 million-unit pace set
in April 2013, NAR reports.
“Some growth was inevitable after subpar housing activity in the
first quarter, but improved inventory is expanding choices and sales
should generally trend upward from this point,” says Lawrence Yun, NAR’s
chief economist. “Annual home sales, however, due to a sluggish first
quarter will likely be lower than last year.”
An Overview of Key Indicators
Inventory levels: Housing inventories soared 16.8
percent in April, reaching a 5.9-month supply at the current sales pace.
That is up from a 5.1-month supply in March. Unsold inventory is 6.5
percent higher than a year ago. “We’ll continue to see a balancing act
between housing inventory and price growth, which remains stronger than
normal simply because there have not been enough sellers in many areas,”
Yun says. “More inventory and increased new-home construction will help
to foster healthy market conditions.”
Home prices: The median existing-home price was
$201,700 in April – 5.2 percent higher than year ago levels. “Current
price data suggests a trend of slower growth, which bodes well for
preserving favorable affordability conditions in much of the country,”
Yun says.
Distressed sales: The decrease continues in
distressed homes, which includes foreclosures and short sales.
Distressed homes accounted for 15 percent of April sales, down from 18
percent a year ago, NAR reports. Broken out, in April, 10 percent of
sales were foreclosures and 5 percent were short sales.
Time on the market: For the fourth consecutive
month, homes sold faster. Four out of 10 homes nationwide sold in less
than a month in April. The median time on the market for all homes was
48 days in April, down from 55 days in March.
Source: National Association of REALTORS®