The National Association of Realtors is reporting that existing home sales were down 0.4% in April, with two of the four major U.S. regions seeing a slight dip in sales, while the West saw growth and the Midwest statistically had no changes. The median existing-home price for all housing types in April was $267,300, up 3.6% from April, 2018 and marks the 86th straight month of year-over-year gains. Total housing inventory at the end of April was 1.83 million (up 1.7% from one year ago). There is a 4.2-month inventory at the current sales pace. Properties remained on the market for an average of 24 days in April (down from 26 one year ago). Fifty-three percent of homes sold in April were on the market for less than a month.
Lawrence Yun, NAR’s chief economist, said he is not overly concerned about the 0.4% dip in sales and expects moderate growth very soon. “First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions,” he said. “Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales.”
“When placing their home on the market, home sellers need to be very realistic and aware of the current conditions.”