One month of positive real estate sales is encouraging, but sometimes it can be a fluke.
That’s why we’re always so thrilled when positive numbers one month carry over into the next month.
And that’s just what we saw with the recent release of May sales numbers.
According to a recent USA Today article, existing home sales increased for the second straight month in May, increasing to their strongest rate since the fall.
More Details Emerge About the Current State of the US Housing Market
Here’s what the most recent data from the National Association of Realtors revealed: Sales of existing single-family homes, townhomes, condos and co-ops reached a seasonally adjusted annual rate of 4.89 million, which marks a 4.9 percent increase from April’s rate of 4.66 million.
This was the highest monthly percentage gain since August 2011!
And this wasn’t the only indicator that the market is improving. In fact, metrics across the board hinted at growth on the national housing market:
- Sales prices also showed marked increases. Specifically, the median existing home price was $213,400 in May, up 5.1 percent from a year earlier.
- Meanwhile, sales of homes priced at $1 million and above increased everywhere but the Midwest
- Total housing inventory at the end of May increased 2.2 percent to 2.28 million existing homes available for sale. That’s 6 percent higher than a year ago.
- At May’s sales rate, there’s a 5.6-month supply of homes for sale, which is close to the 6-month inventory that’s considered a balanced market between buyers and sellers.
Of course, some obstacles still remain on the market.
For instance, sales are still weaker than they were a year ago, when the annualized sales rate was 5.15 million.
And through May, sales were down 8.2 percent from the first five months of last year.
What’s more, the market continues to be difficult for those home buyers with modest financial resources, particularly first-time buyers. Consequently, these home buyers’ share of sales decreased to 27 percent in May, down 2 percent from April 2013.
And although single-family home sales rose 5.7 percent from April, they’re also down 5.7 percent from a year ago.
Still, real estate experts across the country remain optimistic.
They agree that at least three factors will continue to encourage growth and improvement on the national housing market:
- More homes are being listed on the market
- Home prices are rising more slowly than in 2013
- Mortgage rates have declined recently
All of these factors will drive more and more home buyers to the market, further encouraging a healthy and stable real estate market.
Count on Us for Reliable National Real Estate Data!
We hope you ‘ve learned something useful about recent national real estate trends and how they may affect you locally.
Check back here on July 15 as we continue to provide you with useful and up-to-date housing market information that is relevant to you!