Tag Archives: Existing home sales

Existing sales drop, prices rise | Bedford Hills Real Estate

U.S. home sales dropped by the most in nearly 4-1/2 years in March as extraordinary measures to control the spread of the novel coronavirus brought buyer traffic to a virtual standstill, supporting analysts’ views that the economy contracted sharply in the first quarter.

The National Association of Realtors said on Tuesday existing home sales tumbled 8.5% to a seasonally adjusted annual rate of 5.27 million units last month. The percentage decline was the largest since November 2015.

The data reflected contracts signed in January and February, before the coronavirus paralyzed the economy.

A steeper decline in sales is likely in April, with the normally busy spring selling season in jeopardy. Economists polled by Reuters had forecast existing home sales tumbling 8.1% to a rate of 5.30 million units in March.

Existing home sales, which make up about 90% of U.S. home sales, rose 0.8% on a year-on-year basis in March.

States and local governments have issued “stay-at-home” or “shelter-in-place” orders affecting more than 90% of Americans to control the spread of COVID-19, the potentially lethal respiratory illness caused by the virus, and abruptly halting economic activity. At least 22 million people have filed for unemployment benefits since March 21.

The slump in home resales added to a pile of dismal March reports that have led economists to believe the economy contracted at its sharpest pace since World War Two in the first quarter. The government will publish its snapshot for first-quarter gross domestic product next Wednesday.

The housing market was back on the recovery path, thanks to low mortgage rates, before the lockdown measures. It had hit a soft patch starting the first quarter of 2018 through the second quarter of 2019.

Home sales last month dropped in all four regions. There were 1.50 million previously owned homes on the market in March, down 10.2% from a year ago.

The median existing house price increased 8.0% from a year ago to $280,600 in March. At March’s sales pace, it would take 3.4 months to exhaust the current inventory, down from 3.8 months a year ago. A six-to-seven-month supply is viewed as a healthy balance between supply and demand.

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https://www.reuters.com/article/us-usa-economy-housing/u-s-existing-home-sales-tumble-in-march-idUSKCN22320E?il=0

Existing home sales up 3.9% year over year | Mt Kisco Real Estate

After reaching 17-month high last month, existing home sales, released by the National Association of Realtors (NAR), fell more than expected in September despite low mortgage rates.

Total existing home sales, including single-family homes, townhomes, condominiums and co-ops, dropped 2.2% to a seasonally adjusted annual rate of 5.38 million in September. However, sales were still 3.9% higher than a year ago.

The first-time buyer share rose to 33% in September from 31% last month and 32% a year ago. The September inventory stayed the same at 1.83 million units from August but decreased from 1.88 million units a year ago. At the current sales rate, the September unsold inventory represents a 4.1-month supply, up from a 4.0-month supply last month and down from a 4.4-month a year ago.

Homes stayed on the market for an average of 32 days in September, up from 31 days last month and equal to a year ago. In September, 49% of homes sold were on the market for less than a month.

The September all-cash sales shared 17% of transactions, down from 19% last month and 21% a year ago.

The September median sales price of all existing homes was $272,100, up 5.9% from a year ago, representing the 91st consecutive month of year-over-year increases. The median existing condominium/co-op price of $248,600 in September was up 4.5% from a year ago.

Case Shiller home price index up 2% year over year | Mt Kisco Real Estate

Regionally, all regions saw a decline in existing home sales in September compared to the previous month, ranging from 0.9% in the West to 3.1% in the Midwest. On a year-over-year basis, sales rose in all four major regions except for the Midwest, ranging from 1.5% in the Northeast to 6.0% in the South. Sales in the Midwest was nearly unchanged to September 2018.

This monthly decline indicates that sales are not consistently increasing in response to falling mortgage rates, as rapidly rising home prices and tight inventory continue to weigh on housing sector and prevent home sales growth. As mortgage rates below 4% are very attractive to homebuyers, more new home building is needed to meet housing demand. Indeed, supported by low mortgage rates and solid job growth, builder confidence continued to improve, which rose to 20-month high in October.

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http://eyeonhousing.org/2019/10/existing-home-sales-disappoint-in-september/