Home >> Daily Dose >> Housing Inventory on the Rise?
Print This Post Print This Post

Housing Inventory on the Rise?

The National Association of Realtors (NAR) reported a minor decline in existing-home sales in April, continuing March’s drop in sales, as total existing home sales fell 0.4% from March to an adjusted rate of 5.19 million in April.

Total sales are down 4.4% year-over-year and two of the four major U.S. regions saw a slight dip in sales.

The NAR stated the average existing-home price for all housing types in April increased 3.6% from 2018 to $267,300. April’s increase was the 86th-consecutive month of annual gains.

“First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions,” Lawrence Yun, NAR’s Chief Economist said. “Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales.”

April did see an increase in total housing inventory, rising to 1.83 million from 1.67 million in March, which is a 1.7% increase year-over-year. Unsold inventory is at a 4.2-month supply, which is up from 3.8 months in March.

“We see that the inventory totals have steadily improved, and will provide more choices for those looking to buy a home,” Yun said.

A recent report by CoreLogic found that while increasing, home inventory numbers continue to be at historic lows.

CoreLogic’s report stated that inventory of homes for sale increased in March with 4.5 months’ supply of homes, which is historically one of the lowest numbers recorded.

Although March’s figure is an increase year-over-year from March 2018’s 3.5 months of inventory, it was less than half of what it was 10 years ago—9.1 months of inventory.

“Not only is new construction and mobility--two traditional drivers of inventory--at low levels, but some potential inventory shifted to the rental market over the past ten years,” the CoreLogic report states.

In relation to the NAR report, Yun said that sellers have to realize that price growth has moderated.

“When placing their home on the market, home sellers need to be very realistic and aware of the current conditions.”

The time properties remained on the market dropped to an average of 24 days from 36 days in March. Of the homes sold in April, 53% of them were on the market less than a month.

About Author: Mike Albanese

Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville.
x

Check Also

Where Are Homes Gaining the Most Value?

Several markets on the East and West Coasts have seen surges in home values over the past 20 years, with some markets posting more than 300% increases.

GET THE NEWS YOU NEED, WHEN YOU NEED IT.

With daily content from MReport, you’ll never miss another important headline in originations, lending, or servicing. Subscribe to MDaily to begin receiving a complimentary daily email containing the top mortgage news and market information.