Existing Home Sales Report
from the National Association of Realtors
(NAR) shows sales have dropped by 3.7% compared to the month before. This is the second consecutive month that
sales have slumped. Some see this as evidence that the red-hot real estate market may be cooling. However, there could also be a simple explanation as to why existing home sales have slowed – there aren’t enough homes to buy
There are currently 410,000
fewer single-family homes available for sale than there were at this time last year.
Lawrence Yun, Chief Economist
at NAR, explains in the report:
"The sales for March would have been measurably higher, had there been more inventory. Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising."
insight was supported the next day when the Census Bureau
released its Monthly New Residential Sales Report
. It shows that
newly constructed home sales are up 20.7% over the previous month.
Buyer demand remains strong. With more of the adult population becoming vaccinated and job creation data showing encouraging signs, existing-home inventory is expected to grow in the coming months.
What will this mean for home sales going forward?Fannie Mae
, and the Mortgage Bankers Association
(MBA) have all forecasted that total home sales (existing homes and new construction) will continue their momentum both this year and next. Here’s a graph showing those projections:
Living through a pandemic has caused many to re-evaluate the importance of a home and the value of homeownership. The residential real
estate market will benefit from both as we move forward.