Existing Home Sales Retreat Amid Mortgage Rate Volatility

2023-05-18T10:15:44-05:00

Existing home sales fell to three-month low in April as limited inventory and fluctuating mortgage rates continued to weight on homebuyers, according to the National Association of Realtors (NAR). With inflation continuing to ease and rent growth expected to slow, existing home sales will rebound, despite the recent declines. Total existing home sales, including single-family homes, townhomes, condominiums and co-ops, fell 3.4% to a seasonally adjusted annual rate of 4.28 million in April. On a year-over-year basis, sales were 23.2% lower than a year ago. The first-time buyer share rose to 29% in April, up from 28% in both March 2023 and April 2022. The April inventory level measure increased slightly to 1.04 million units and was up 1.03 million from a year ago. At the current sales rate, April unsold inventory sits at a 2.9-months’ supply, up from 2.6-month last month and 2.2-months reading a year ago. This inventory level remains very low, compared to balanced market conditions (4.5 to 6 months’ supply), and illustrates the long-run need for more home construction. Homes stayed on the market for an average of 22 days in April, down from 29 days in March but up from 17 days in April 2022. In April, 73% of homes sold were on the market for less than a month. The April all-cash sales share was 28% of transactions, up from 27% last month and 26% a year ago. All-cash buyers are less affected by changes in interest rates. The April median sales price of all existing homes was $388,800, down 1.7% from a year ago. The median existing condominium/co-op price of $348,000 in April was up 0.7% from a year ago. Geographically, all four regions observed a decrease in existing home sales in April, ranging from 1.9% in the Northeast and Midwest to 6.1% in the West. On a year-over-year basis, all four regions continued to see a double-digit decline in sales, ranging from 20.2% in the South to 31.3% in the West. The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI fell 5.2% from 83.2 to 78.9 in March. On a year-over-year basis, pending sales were 23.2% lower than a year ago per the NAR data. Related ‹ NAHB Debuts New Index for Multifamily ActivityTags: Existing Home Sales, inventory, mortgage rates, NAR

Existing Home Sales Retreat Amid Mortgage Rate Volatility2023-05-18T10:15:44-05:00

Existing Home Sales Continue to Fall in January

2023-02-21T12:18:07-06:00

As elevated mortgage rates and tight inventory continue to weaken housing demand, the volume of existing home sales declined for a twelfth consecutive month as of January, according to the National Association of Realtors (NAR). This is the longest run of declines since 1999. While mortgage rates have stabilized in January, they are likely to see a rise in the short run with additional tightening of monetary policy. Additionally, home price appreciation slowed for a consecutive seventh month after reaching a record high existing home average of $413,800 in June. Total existing home sales, including single-family homes, townhomes, condominiums and co-ops, fell 0.7% to a seasonally adjusted annual rate of 4.0 million in January, the lowest pace since November 2010 with the exception of April and May 2020. On a year-over-year basis, sales were 36.9% lower than a year ago. The first-time buyer share stayed at 31% in January, unchanged from last month but up from 27% in January 2022. The fact that this share has stayed stable is a positive sign of future homebuying demand. The January inventory level measure rose from 0.96 to 0.98 million units and was up 0.85 million from a year ago. At the current sales rate, January unsold inventory sits at a 2.9-month supply, unchanged from last month but up from a 1.6-months reading a year ago. Homes stayed on the market for an average of 33 days in January, up from 26 days in December and 19 days in January2022. In January, 54% of homes sold were on the market for less than a month. The January all-cash sales share was 29% of transactions, up from 28% last month and 27% a year ago. All-cash buyers are less affected by changes in interest rates. The January median sales price of all existing homes was $359,000, up 1.3% from a year ago, representing the 131st consecutive month of year-over-year increases, the longest-running streak on record. The median existing condominium/co-op price of $320,000 in January was up 5.2% from a year ago. Regionally, existing home sales were mixed in January. Sales in the South and West rose 1.1% and 2.9% last month, while sales in the Northeast and Midwest fell 3.8% and 5.0%, respectively. On a year-over-year basis, all four regions continued to see a double-digit decline in sales, ranging from 33.3% in the Midwest to 42.4% in the West. The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI rose 2.5% from 75.0 to 76.9 in December, the first time increase since May 2022. On a year-over-year basis, pending sales were 33.8% lower than a year ago per the NAR data. Related ‹ Additional Declines for New Home SizeTags: Existing Home Sales, inventory, mortgage rates, pending home sales index

Existing Home Sales Continue to Fall in January2023-02-21T12:18:07-06:00

About My Work

Phasellus non ante ac dui sagittis volutpat. Curabitur a quam nisl. Nam est elit, congue et quam id, laoreet consequat erat. Aenean porta placerat efficitur. Vestibulum et dictum massa, ac finibus turpis.

Recent Works

Recent Posts