The National Association of Realtors (NAR) released their Existing Home Sales Report for April recently. The report indicates that existing home sales have dropped month over month for 3 straight months. The positive aspect of the report shows that existing home sales have increased in every region by double digits for April as we are continuing to normalize after the pandemic.
The National Association of Realtors consider existing-home sales as completed transactions that include single-family homes, townhomes, condominiums and co-ops. The number of existing home sales decreased by 2.7% from March. Existing home sales moved to an annual rate of 5.85 million in April. The positive aspect is overall existing home sales grew significantly year-over-year. It has increased 33.9% from a year ago where only 4.37 million moved during the same period.
Home prices are up significantly as well since April 2020. Median existing home prices for April was $341,600. This is up 19.1% from the same period last year. This falls in line with inventory of houses. Inventory of houses is down 20.5% from a year ago.
Lawrence Yun, chief economist for the NAR believe that house appreciation will subside when additional homes begin to hit the market. He states:
“Home sales were down again in April from the prior month, as housing supply continues to fall short of demand. We’ll see more inventory come to the market later this year as further COVID-19 vaccinations are administered and potential home sellers become more comfortable listing and showing their homes. The falling number of homeowners in mortgage forbearance will also bring about more inventory. Despite the decline, housing demand is still strong compared to one year ago, evidenced by home sales from this January to April, which are up 20% compared to 2020. The additional supply projected for the market should cool down the torrid pace of price appreciation later in the year.”
Other indications that the market is beginning to swing are sales of single family homes and condo/coops sales. Year over year, single family homes are up 28.9 percent from April 2020. Additionally existing condominium and co-ops sales are up 84.6% year over year.
Below is a breakdown regionally of the existing home sales numbers:
Northeast: Existing-home sales in the Northeast dropped 3.9% from March. The more impressive number is the annual rate of 730,000 represents a 30.4% leap from a year ago. The median price in the Northeast was $381,100. This is an increase of 22.0 percent from April 2020.
South: Existing-home sales in the South region decreased by 3.7%,. The annual rate of 2,600,000 in April was up 39.0 from April 2020. Median prices in the South was $289,600, a 15.8% jump from the same period a year ago.
West: There was a decline in the West of 3.1 percent from the month prior however but the annual rate of 1,230,000 in April was whopping 53.8 percent boost from a year ago. Median prices in the West was $501,200. This is an increase of 19.9 percent year over year.
Midwest: Midwest was the only region to see grown as they saw an increase of 0.8% from March. Also the annual rate grew 13.2 percent from April 2020 to 1,290,000. Median prices in the Midwest grew to $259,300, a 13.5% increase.
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