Existing-home sales rose in April with strong buyer activity in lower price ranges, according to the National Association of Realtors. Existing-home sales increased 2.9 percent to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March. Yet, home sales were 3.5 percent below the 4.85 million-unit level in April 2008, according to NAR.
REAL Trends Comment: Sales were up from March (which is a seasonal event) but down from last April (a cyclical event). As we reported in the REAL Trends April Housing Market Report, sales did not improve from March in our study. Further the seasonal adjustment in the NAR report was smaller (2.9%) than the normal monthly adjustment which is usually in the range of 10.5% to 12.4% - that is April sales are usually 10.5% to 12.4% higher than they are in March. We would enjoy more than anyone the news that the market is improving but the data just doesn't show it - yet.
An NAR practitioner survey in April showed first-time buyers declined to 40 percent of transactions, implying more repeat buyers are entering the traditional spring home-buying season. It also showed the number of buyers looking at homes has increased 14 percentage points from a year ago.
National median existing-home price: for all housing types, was $170,200 in April, which is 15.4 percent below 2008. Distressed properties, which accounted for 45 percent of all sales in April, continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes.
Total housing inventory: at the end of April, rose 8.8 percent to 3.97 million existing homes available for sale, which represents a 10.2-month supply at the current sales pace, compared with a 9.6-month supply in March. "The gain in inventory is largely seasonal from sellers entering the spring market," Yun says. "Even with the rise, inventory over the past few months has remained consistently lower in comparison with a year earlier."
Source: NAR
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