The lack of residences on the market, leading to price jumps and bidding wars, isn’t stopping buyers from closing on the homes of their dreams.
In April, the number of existing homes sold shot up 4.9% year over year, to 471,000 purchases across the great U.S. of A., according to a recent report from the National Association of Realtors®. Sales were up a whopping 11.9% in April from March, most likely due to more buyers and sellers coming out of the woodwork as the weather warmed up.
The report looked only at existing homes (i.e., ones that were not newly constructed). The numbers were not seasonally adjusted, which is to say they weren’t smoothed out over a 12-month period to account for seasonal fluctuations.
“The strong momentum from the start of the year has definitely continued,” says Jonathan Smoke, realtor.com®‘s chief economist.
He was somewhat encouraged by the rise in the share of first-time buyers, to 32% of the market. That’s a small bump from 30% for both the previous month and a year ago, according to the report. But it’s still well below what’s considered a healthy share at 40%, Smoke says.
“Where we have the most acute shortage of homes for sale is with affordably priced homes,” he says.
Despite the challenges, homes flew off the proverbial shelves. They were typically on the market for only 39 days in April—compared with 47 in March. That’s about the same time on market as a year ago.
The median price of an existing home was $232,500 in April, a 6.3% bump from a year ago, according to the report. Single-family homes went for a smidgen more at a median $233,700, while condos sold for a tiny bit less at $233,300.
In the Northeast, home to New York City, we are seeing activity with median prices of $263,600. The price tag represented a 4.1% rise from April 2015. c About 62,000 homes were sold in the region last month.
Source: Realtor.com (Real Estate News)