Blog, Real Estate Articles

US Real Estate Trends 1

Home Sales Pace

Existing U.S. home sales rose in April, according to data from the National Association of Realtors. Sales were up 2.9 percent to a seasonally adjusted annual rate of 4.68 million units during the month, up from the upwardly revised 4.55 million units in March. Total sales were still down from a year earlier however, when the annual pace reached 4.85 million units. The national median home price in April fell, though, to $170,200 from $175, 200 in March. The current price is down 15.4 percent from the same time last year.

(The NAR defines existing homes as all previously-owned single-family homes, townhouses, condominiums, and co-ops. The group seasonally adjusts the sales numbers to factor in things like inclement weather, school sessions, winter holidays, etc to smooth out the trends. The NAR also describes its sales data based on an annual pace. The monthly figure represents the total number of housing units that sold in one year if the current rate were to continue unchanged.)

Sales Pace by Region

Sales rose in all areas but the Midwest in April. The Northeast led the rise with an 11.6 percent increase in the annual pace of its sales. The rate quickened to 770,000 units. Sales are still down 10.5 percent from April 2008.

The West saw a 3.5 percent increase in sales in the latest month, with the rate climbing to 1.17 million. Sales are also up a whopping 19.4 percent from last year. Sales in the South inched up by 1.8 percent to an annual rate of 1.74 million, but in a year-over-year comparison, they were down 8.9 percent. The Midwest experienced a 2.0 percent drop in sales as the pace slipped to 1.00 million units, accounting for a 9.9 percent decrease from the previous year.

Home Prices

The median home price, the point at which half of all homes sold for more and half sold for less, fell in April led by losses in the West and the Midwest, and tempered by gains in the Northeast and South. The median price for the West fell dramatically in April to $222,600, down from $252,400 in March, continuing to reflect the high volume of foreclosed properties on the market. The new figure is also down 21.8 percent from the previous year.

In the Midwest, the median sales price fell to $138,800 from $141,300 in March. The price is down 11.7 percent in year-over-year comparisons. The median price in the South grew to $148,000 in April up from $146,900, but it has fallen 12.8 percent in the past year. In the Northeast, the sales price rose to $237,400, an increase from $231,700 in March. The price is down 9.6 percent from April 2008 though.

Inventory

As sales grew in April, so did the number of homes for sale. Market inventory rose to 3.97 million units, an 8.8 percent increase from 3.737 million in March. At the current sales pace, the current total inventory represents a 10.2-month supply of homes. In March, there was only a 9.6-month supply.