Existing home sales fell slightly in the April 2019 Housing Market Recap, following a sharp drop in March. One region actually saw a gain in sales while two fell and one was unchanged. Prices increased yet again and the pace of sales picked up, both month-over-month and year-over-year. Inventory rose also, continuing a positive trend for buyers.
April existing home sales fell 0.4 percent from March, and are down 4.4 percent compared to April 2018, according to the National Association of Realtors® (NAR) April Existing Home Sales Report, released May 21st.
Inventory increased from March to April, and was up year-over-year. At the current sales rate the supply of unsold inventory was 4.2 months, up from 4.0 months a year ago.
Home prices continued to increase year-over-year. The median price of existing homes sold in April was $267,300, an increase of 3.6 percent from April 2018 ($257,900). We’ve now reached 86 consecutive months of year-over-year increases.
Days on the market (DOM) dropped significantly from March, moving from 36 to 24. A year ago, homes typically stayed on the market for 26 days. The market is moving quickly, as we would expect with the spring buying season heating up.
NAR chief economist Lawrence Yun does not see the slight drop in sales as a matter of concern. “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.”
Regions: Sales are mixed. Only the West saw an increase in sales, rising 1.8 percent. Comparing April to March, sales fell 4.5 percent in the Northeast, 0.4 percent in the South, and were unchanged in the Midwest. The Midwest led year-over-year price increases at 5.5 percent, followed by the South at 4.4 percent, the West at 1.3 percent, and the Northeast at 0.9 percent. Boston-Cambridge-Newton, MA-NH, took top honors this month on the hottest metro areas list (measured by days on the market/listing views per property). The rest of the April Top 10 were Lafayette-West Lafayette, IN, Spokane-Spokane Valley, WA, Columbus, OH, Sacramento-Roseville-Arden-Arcade, CA, Midland, TX, Rochester, NY, Colorado Springs, CO, Odessa, TX, and Worcester, MA-CT.
The Market Moves Quickly. Homes stayed on the market an average of only 24 days in April. Are you planning to buy? If you see a property you like, you need to be ready to make a strong offer immediately. As part of your offer, you’ll need proof that you are financially capable of buying the home. Begin by talking to a First Choice Loan Services Inc. mortgage loan originator about your loan options. Start your journey home with First Choice Loan Service!