“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.
Why You May Still Want To Sell Your House After All
If you need to sell now because something in your own life has changed, don’t let mortgage rates hold you back from what you want.
Gen Z: The Next Generation Is Making Moves in the Housing Market
Generation Z (Gen Z) is eager to put down their own roots and achieve financial independence. As a result, they’re turning to homeownership.
Why You Don’t Need To Fear the Return of Adjustable-Rate Mortgages
If you’re worried today’s adjustable-rate mortgages are like the ones from the housing crash, rest assured, things are different this time.
Why Median Home Sales Price Is Confusing Right Now
Median home sales prices change because there’s a mix of homes being sold is being impacted by affordability and mortgage rates.
People Want Less Expensive Homes – And Builders Are Responding
Builders producing smaller, less expensive newly built homes give you more affordable options at a time when that’s really needed.
Don’t Expect a Flood of Foreclosures
Before there can be a significant rise in foreclosures, the number of people who can’t pay their mortgage would need to rise. Since buyers are making their payments today, a wave of foreclosures isn’t likely.