Existing-Home Sales Increase Slightly

(Illustration courtesy of the National Association of Realtors)

Existing-home sales increased by 0.2% month-over-month in April, the National Association of Realtors reported yesterday.

Month-over-month sales increased in the Midwest and the South, were unchanged in the Northeast and declined in the West, the NAR Existing-Home Sales report said. On a year-over-year basis, sales rose in the South, were flat in the West and fell in both the Northeast and Midwest.

“Despite mixed macroeconomic signals—including a record-high stock market and historically low consumer confidence—home sales were modestly boosted by the continued improvement in housing affordability,” NAR Chief Economist Lawrence Yun said. He noted mortgage rates are lower than a year ago and average income growth is outpacing home price gains.

“Inventory still remains tight,” Yun added. “Multiple offers, though not as intense as a few years ago, are still occurring. At the same time, days on market are lengthening on average, implying that consumers are taking their time before making decisions.”

Mark Hamrick, senior economic analyst with Bankrate, Charlotte, said there is not much “spring” in the spring home sales season this year. “There’s still a slump in sales of previously owned homes, dampened by a lack of supply of homes for sale and constrained by affordability challenges,” he said.

“If there’s good news here, it is that the dam appears to be cracking a bit on the housing affordability front,” Hamrick continued. “Growth in incomes is outpacing the national rise in home prices. With sales of previously owned homes flat from a year ago, and up modestly on the month, the housing market is essentially marching in place, in contrast to the rise in sales of generally lower-priced new homes.”