Home Sales and Prices Archives - Hillwood Loves Realtor

Existing Home Sales Edge Higher in May

Fan-Yu Kuo2025-06-23T13:17:33-05:00

Existing home sales rose 0.8% in May but remained near historical lows, according to the National Association of Realtors (NAR). Despite the modest increase, this marks the slowest pace for May since 2009. The sluggish sales suggest higher mortgage rates and elevated home prices continue to sideline buyers even with improved inventory conditions. Mortgage rates have hovered between 6.5% and 7% due to ongoing economic and tariff uncertainty this year, prompting the Fed to pause interest rate cuts. With mortgage rates expected to stay above 6% for longer due to an anticipated slower easing pace in 2025, these prolonged higher rates and high home prices would continue to weigh on the market. As such, sales are likely to remain limited in the coming months. Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 0.8% to a seasonally adjusted annual rate of 4.03 million in May. On a year-over-year basis, sales were 0.7% lower than a year ago. The first-time buyer share was 30% in May, down from 34% in April and 31% from a year ago. The existing home inventory level was 1.54 million units in May, up 6.2% from April, and up 20.3% from a year ago. At the current sales rate, May unsold inventory sits at a 4.6-months’ supply, up from 4.4-months in April and 3.8-months in May 2024. Inventory between 4.5 to 6 month’s supply is generally considered a balanced market. Homes stayed on the market for an average of 27 days in May, down from 29 days in April but up from 24 days in May 2024. The May all-cash sales share was 27% of transactions, up from 25% in April but down from 28% a year ago. All-cash buyers are less affected by changes in interest rates. The May median sales price of all existing homes was $422,800, up 1.3% from last year. This marked an all-time high for the month of May and the 23rd consecutive month of year-over-year increases. The median condominium/co-op price in May was up 0.7% from a year ago at $371,300. Recent gains for home inventory will put downward pressure on resale home prices in most markets in 2025. Geographically, three of the four regions saw an increase in existing home sales in May, with an increase of 1.7% in the South, 1.0% in the Midwest, and 4.2% in the Northeast. Meanwhile, sales in the West fell 5.4%. On a year-over-year basis, sales were up in the Northeast (4.2%) and the Midwest (1.0%), while sales were down in the South (-0.5%) and the West (-6.7%). The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI fell from 76.1 to 71.3 in April, suggesting buyers remained constrained by higher mortgage rates. On a year-over-year basis, pending sales were 2.5% lower than a year ago, per National Association of Realtors data. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Existing Home Sales Edge Higher in MayFan-Yu Kuo2025-06-23T13:17:33-05:00

House Price Appreciation by State and Metro Area: First Quarter 2025

Jing Fu2025-06-10T10:15:50-05:00

House price growth slowed in the first quarter of 2025, partly due to a decline in demand and an increase in supply. Persistent high mortgage rates and increased inventory combined to ease upward pressure on house prices. These factors signaled a cooling market, following rapid gains seen in previous years. Nationally, according to the quarterly all-transactions House Price Index (HPI) released by the Federal Housing Finance Agency (FHFA), U.S. house prices rose 4.7% in the first quarter of 2025, compared to the first quarter of 2024. This year-over-year (YoY) rate was lower than the previous quarter’s rate of 5.5%. The FHFA’s all-transactions HPI tracks average price changes based on repeat sales and refinancings of the same single-family properties. It offers insights not only at the national level but also across states and metropolitan areas. Between the first quarter of 2024 and the first quarter of 2025, all 50 states and the District of Columbia experienced positive house price appreciation, ranging from 1.0% to 8.4%. Connecticut and Rhode Island topped the house price appreciation list with an 8.4% gain each, followed by New Jersey with a 7.8% gain. On the opposite end, Louisiana recorded the lowest house price appreciation at 1.0%. Out of all 50 states and the District of Columbia, 26 states exceeded the national YoY growth rate of 4.7%. However, on a quarterly basis, home price appreciation slowed in 39 states compared to the fourth quarter of 2024, highlighting a broad-based deceleration in the housing market. House price growth widely varied across U.S. metro areas year-over-year, ranging from -7.0% to +23.0%. Rome, GA recorded the largest decline in house prices, whereas Johnstown, PA posted the highest increase over the previous four quarters. In the first quarter of 2025, 28 metro areas, in reddish color on the map above, experienced negative house price appreciation. Meanwhile, 356 metro areas experienced price increases. Since the onset of the COVID-19 pandemic, house prices have surged nationally. Between the first quarter of 2020 and the first quarter of 2025, house prices rose by 54.9% nationwide. More than half of metro areas outpaced this national price growth rate of 54.9%. The table below highlights the top ten and bottom ten markets for house price appreciation during this five-year period. Among all the metro areas, house price appreciation ranged from 16.7% to 90.1%. Hinesville, GA led the nation with the highest house price appreciation. Lake Charles, LA recorded the lowest appreciation, marking its fourth consecutive quarter at the bottom. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

House Price Appreciation by State and Metro Area: First Quarter 2025Jing Fu2025-06-10T10:15:50-05:00

Existing Home Sales Fall in April

Fan-Yu Kuo2025-05-22T12:20:10-05:00

Despite the brief retreat in mortgage rates and increased supply, existing home sales dropped to 7-month low in April, according to the National Association of Realtors (NAR). This unexpected decline suggests buyers’ activity continues to be constrained by economic uncertainty and ongoing affordability challenges even with improved market conditions. While existing home inventory improved , the market faces headwinds as mortgage rates are expected to stay above 6% for longer due to an anticipated slower easing pace in 2025. These prolonged higher rates may continue to discourage homeowners from trading existing mortgages for new ones with higher rates, keeping supply tight and prices elevated. As such, sales are likely to remain limited in the coming months due to elevated mortgage rates and home prices. Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, fell 0.5% to a seasonally adjusted annual rate of 4.00 million in April. On a year-over-year basis, sales were 2.0% lower than a year ago. The first-time buyer share was 34% in April, up from 32% in March and 33% from a year ago. The existing home inventory level was 1.45 million units in April, up 9.0% from March, and up 20.8% from a year ago. At the current sales rate, April unsold inventory sits at a 4.4-months’ supply, up from 4.0-months in March and 3.5-months in April 2024. This inventory level remains low compared to balanced market conditions (4.5 to 6 months’ supply), but it increases growing competition for home builders. Homes stayed on the market for an average of 29 days in April, down from 36 days in March but up from 26 days in April 2024. The April all-cash sales share was 25% of transactions, down from 26% in March and 28% a year ago. All-cash buyers are less affected by changes in interest rates. The April median sales price of all existing homes was $414,000, up 1.8% from last year. This marked an all-time high for the month and the 22nd consecutive month of year-over-year increases. The median condominium/co-op price in April was up 1.4% from a year ago at $370,100. This rate of price growth will slow as inventory increases. Existing home sales in April were mixed across the four major regions. Sales fell in the West (-3.9%) and Northeast (-2.0%), rose in the Midwest (2.1%), and remained unchanged in the South. On a year-over-year basis, sales were down in the Midwest (-1.0%), South (-3.2%) and West (-1.3%), while remaining flat in the Northeast. The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI jumped from 72.1 to 76.5 in March, the largest monthly increase since December 2023. This increase suggests homebuyers are highly sensitive to even small changes in mortgage rates. On a year-over-year basis, pending sales were 0.6% lower than a year ago, per National Association of Realtors data. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Existing Home Sales Fall in AprilFan-Yu Kuo2025-05-22T12:20:10-05:00

Prices for New Homes Continue to Drop as Existing Rises

Onnah Dereski2025-05-06T09:19:02-05:00

The median price for a new single-family home sold in the first quarter of 2025 was $416,900, a mere $14,600 above the existing home sale price of $402,300, according to U.S. Census Bureau and National Association of Realtors data (not seasonally adjusted – NSA). Typically, new homes carry a price premium over existing homes. However, the median existing home price exceeded the new home price in the second quarter of 2024 and again in the third quarter of 2024. The first quarter of 2025’s $14,600 price difference is considerably modest by historical standards. Just over two years ago in Q4 2022, the price gap hit a peak with new homes selling for $64,200 more than existing homes. The average difference over the last five years was $26,700, while the decade (2010-2019) prior saw a much wider gap of $66,000. Both new and existing homes saw dramatic increases in prices post-pandemic due to higher construction costs and limited supply. While overall home prices remain elevated compared to historical norms, new home prices have moderated due to builder business decisions, but existing home prices continue to increase because of lean supply. The median price for a new single-family home sold in the first quarter of 2025 decreased 2.32% from the previous year. New home prices have continued to experience year-over-year declines for eight consecutive quarters. Meanwhile, the median price for existing single-family homes increased 3.38% from one year ago. Existing home prices have continued to experience year-over-year increases for seven consecutive quarters. There are several factors as to why new and existing homes are selling at similar price points. Tight inventory continues to push up prices for existing homes, as many homeowners who secured low mortgage rates during the pandemic are hesitant to sell due to current high interest rates. Meanwhile, new home pricing is more volatile – prices change due to the types and locations of homes being built. Despite various challenges facing the industry, home builders are adapting to affordability challenges by building on smaller lots, constructing smaller homes, and offering incentives. Additionally, there has been a shift in home building toward the South, associated with less expensive homes because of policy effects. The least expensive region for homes in the first quarter was the Midwest, with a median price of $367,500 for new homes and $297,800 for existing homes. The South followed closely, with a median new home price of $376,000 and an existing home price of $361,800. New homes were most expensive in the Northeast with a median price of $784,900, while the West sold at $522,100. However, for existing homes, the West led as the most expensive region at $626,000, followed by the Northeast at $482,700. The new home price premium was most pronounced in the Northeast, where new homes sold for $302,200 more than existing homes. In contrast, the South saw little difference with a modest $14,200— similar to the national trend. Uniquely, this pattern reversed in the West, where existing homes were $103,900 more than new homes. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Prices for New Homes Continue to Drop as Existing RisesOnnah Dereski2025-05-06T09:19:02-05:00

Existing Home Sales Receded in March

Jing Fu2025-04-24T12:16:51-05:00

Existing home sales declined in March, according to the National Association of Realtors (NAR), as affordability challenges continued to weigh on the market. For the first time, the median home price surpassed $400,000 for the month of March, underscoring the ongoing pressure on prospective buyers. While mortgage rates have eased slightly, persistent economic uncertainty may continue to limit buyer activity in the near term. While existing home inventory improves and the Fed continues lowering rates, the market faces headwinds as mortgage rates are expected to stay above 6% for longer due to an anticipated slower easing pace in 2025. These prolonged rates may continue to discourage homeowners from trading existing mortgages for new ones with higher rates, keeping supply tight and prices elevated. As such, sales are likely to remain limited in the coming months due to elevated mortgage rates and home prices. Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, declined 5.9% to a seasonally adjusted annual rate of 4.02 million in March. On a year-over-year basis, sales were 2.4% lower than a year ago. The share of first-time buyers rose to 32% in March, up from 31% in February and unchanged from March 2024. The existing home inventory level was 1.33 million units in March, up 8.1% from February and 19.8% from a year ago. At the current sales rate, March unsold inventory sits at a 4.0-months’ supply, up from 3.5 months in February and 3.2 months in March 2024. This inventory level remains 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 36 days in March, down from 42 days in February but up from 33 days in March 2024. The March all-cash sales share was 26% of transactions, down from 32% in February and 28% a year ago. The March median sales price of all existing homes was $403,700, up 2.7% from last year. This marked the 21st consecutive month of year-over-year increases. The median condominium/co-op price in March was up 1.5% from a year ago at $363,000. This rate of price growth will slow as inventory increases. In March, existing home sales declined across all four major U.S. regions. The West experienced the steepest drop, with sales falling 9.4%, followed by the South (-5.7%), the Midwest (-5.0%), and the Northeast (-2.0%). On a year-over-year basis, sales rose slightly in the West by 1.3%, declined in the South and Midwest by 4.2% and 3.1% respectively, and remained unchanged in the Northeast. The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI fell from 70.6 to an all-time low of 67.3 in February. This decline suggests elevated home prices and higher mortgage rates continue to constrain affordability. On a year-over-year basis, pending sales were 9.9% lower than a year ago, per National Association of Realtors data. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Existing Home Sales Receded in MarchJing Fu2025-04-24T12:16:51-05:00

New Home Sales Rise in March

Robert Dietz2025-04-23T10:33:44-05:00

A modest decline in mortgage rates and lean existing inventory helped boost new home sales in March even as builders and consumers contend with uncertain market conditions. Sales of newly built, single-family homes in March increased 7.4% to a 724,000 seasonally adjusted annual rate from a revised January number, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in March was up 6.0% compared to a year earlier. The March new home sales data shows that demand continues to be present in the market, provided affordability conditions permit a purchase. An increase in economic certainty would be a big boost to future sales conditions. Lower mortgage interest rates helped boost the pace of new home sales in March. In February, the average 30-year fixed rate mortgage was 6.84%, while in March it fell to 6.65%. A new home sale occurs when a sales contract is signed, or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the March reading of 724,000 units is the number of homes that would sell if this pace continued for the next 12 months. New single-family home inventory in March continued to rise to a level of 503,000, up 7.9% compared to a year earlier. This represents an 8.3 months’ supply at the current building pace. This level of supply continues to be reasonable given that the resale, single-family months’ supply remains lean at just 3.4. The count of completed, ready-to-occupy homes available for sale increased to 119,000, up 34% from a year ago. However, the March data also is showing signs that the total amount of inventory in the new construction space has slowed given soft housing conditions at the start of 2025. For example, the count of new homes available for sale that are under construction (263,000 in March) is down 5% year-over-year and 6% lower than the non-seasonally adjusted peak count set in October 2024. The median new home sale price in March was $403,600, down 7.5% from a year ago. Sales were particularly strong at lower price levels. Compared to March 2024, new homes sales were 33% higher for homes priced below $300,000 and 28% higher for new homes priced between $300,000 and $400,000. Regionally, on a year-to-date basis, new home sales are up 12.9% in the South, but are down 32% in the Northeast, 18.3% in the Midwest and 6% in the West. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

New Home Sales Rise in MarchRobert Dietz2025-04-23T10:33:44-05:00

Existing Home Sales Increased in February

Fan-Yu Kuo2025-03-20T13:17:48-05:00

Existing home sales in February increased to the second highest level since March 2024, according to the National Association of Realtors (NAR). This rebound suggests buyers are slowly entering the market as inventory improves and mortgage rates decline from recent high in January. Despite rates easing, economic uncertainty may continue to constrain buyer activity. While existing home inventory improves and the Fed continues lowering rates, the market faces headwinds as mortgage rates are expected to stay above 6% for longer due to an anticipated slower easing pace in 2025. These prolonged rates may continue to discourage homeowners from trading existing mortgages for new ones with higher rates, keeping supply tight and prices elevated. As such, sales are likely to remain limited in the coming months due to elevated mortgage rates and home prices. Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 4.2% to a seasonally adjusted annual rate of 4.26 million in February. On a year-over-year basis, sales were 1.2% lower than a year ago. The first-time buyer share was 31% in February, up from 28% in January and 26% from a year ago. The existing home inventory level was 1.24 million units in February, up from 1.18 million in January, and up 17.0% from a year ago. At the current sales rate, February unsold inventory sits at a 3.5-months’ supply, unchanged from last month but up from 3.0-months’ supply a year ago. This inventory level remains 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 42 days in February, up from 41 days in January and 38 days in February 2024. The February all-cash sales share was 32% of transactions, up from 29% in January but down from 33% a year ago. All-cash buyers are less affected by changes in interest rates. The February median sales price of all existing homes was $398,400, up 3.8% from last year. This marked the 20th consecutive month of year-over-year increases. The median condominium/co-op price in February was up 3.5% from a year ago at $355,100. This rate of price growth will slow as inventory increases. Existing home sales in February were mixed across the four major regions. Sales rose in the South (4.4%) and West (13.3%), fell in the Northeast (-2.0%), and remained unchanged in the Midwest. On a year-over-year basis, sales increased in the Northeast (4.2%) and Midwest (1.0%), decreased in the South (-4.0%), and were unchanged in the West. The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI fell from 74.0 to an all-time low of 70.6 in January. This decline suggests elevated home prices and higher mortgage rates continue to constrain affordability. On a year-over-year basis, pending sales were 5.2% lower than a year ago, per National Association of Realtors data. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Existing Home Sales Increased in FebruaryFan-Yu Kuo2025-03-20T13:17:48-05:00

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