The National Association of Realtors’s April home sales report reveals two important things: a) housing inventory is still scarce, and b) those that are viable for sale are remaining for a shorter period in the market.
A seasonally-adjusted rate of 5.57 million properties were recorded in April’s total sales consisted of completed transactions for single-family homes, townhouses, condominiums and co-ops. This is a month-over-month decrease of 2.3 percent from March’s seasonally-adjusted rate of 5.70 million but still up year-over-year by 1.6 percent.
NAR chief economist Lawrence Yun points out the facts that the pace at which homes are coming off the market is not being parred by an equal increase in inventory. So while housing construction still lags, demands remain high, driving home prices to the roof.
Other report highlights
- All major regions saw a decrease in sales in April, except for the Midwest
- The average price of a property sits at $244,800 for April which is a 6.0 percent year-over-year increase from April 2016.
- The total housing inventory finished at 7.2 percent to 1.93 million, 9.0 percent lower than last year’s.
- The average time that the house sits in the market is at 29 days, down from 34 days in March and 39 days from the previous year. Short sales stayed the longest at 88 days; foreclosures in 46 days, while non-distressed homes stayed in the market for 28 days.
- 52 percent of April’s home sales stayed in the market for less than month on average.
- The average commitment rate for 30-year, conventional FRM dipped for the first time in six months straight – 4.05 percent from 4.20 percent in the previous month.
Still, despite all this, mortgage rates just currently hit the lowest since the start of the year. It’s a confusing menagerie of signals, but whatever the case may be, it’s a great time to lock on your rate if you are currently purchasing or refinancing. Rates are volatileand given the continued trend in housing inventory – with no sign yet of relief – it’s not far off to predict that rates will tick again soon. Meanwhile, it might be harder to find a home without multiple interest on it so be prepared to bid.