“Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising.”
Last week’s Existing Home Sales Report from the National Association of Realtors (NAR) shows sales have dropped by 3.7% compared to the month before. This is the second consecutive month that sales have slumped. Some see this as evidence that the red-hot real estate market may be cooling. However, there could also be a simple explanation as to why existing home sales have slowed – there aren’t enough homes to buy. There are currently 410,000 fewer single-family homes available for sale than there were at this time last year.
Lawrence Yun, Chief Economist at NAR, explains in the report:
“The sales for March would have been measurably higher, had there been more inventory. Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising.”
Yun’s insight was supported the next day when the Census Bureau released its Monthly New Residential Sales Report. It shows that newly constructed home sales are up 20.7% over the previous month.
Buyer demand remains strong. With more of the adult population becoming vaccinated and job creation data showing encouraging signs, existing-home inventory is expected to grow in the coming months.
What will this mean for home sales going forward?
Fannie Mae, Freddie Mac, and the Mortgage Bankers Association (MBA) have all forecasted that total home sales (existing homes and new construction) will continue their momentum both this year and next. Here’s a graph showing those projections:
Bottom Line
Living through a pandemic has caused many to re-evaluate the importance of a home and the value of homeownership. The residential real estate market will benefit from both as we move forward.
To view original article, visit Keeping Current Matters.
Do Elections Impact the Housing Market?
While Presidential elections do have some impact on the housing market, the effects are usually small and temporary. For help navigating the market, election year or not, let’s connect.
How Long Will It Take To Sell My House?
You may be wondering how long the whole process is going to take. One way to get your answer? Work with a local real estate agent.
Housing Market Forecast: What’s Ahead for the 2nd Half of 2024
Here’s what experts say you should expect for home prices, mortgage rates, and home sales.
Why a Vacation Home Is the Ultimate Summer Upgrade
If you’re excited about getting away and having some fun in the sun, it might make sense to own your own vacation home.
What You Need To Know About Today’s Down Payment Programs
If you want more information on down payment programs, the best place to start is by contacting a trusted real estate professional.
Worried About Mortgage Rates? Control the Controllables
Remember, you can’t control what happens in the broader economy. But you can control the controllables.