Sale and Supply of Existing Homes

National real estate numbers for April are being reported this week. Today that included existing home sales and the supply of existing homes. Both numbers were down considerably. Closed existing home sales were down 17.8% from last year. While that is a significant decrease, it was not as bad as the 19.5% decline that had been expected. The other number that was reported today was the supply of existing homes. The number of existing homes for sale was down 19.7%, which is the lowest April reading ever. This lack of supply has resulted in the national median home price rising to a record high of $286,800.

Locally we are experiencing a similar situation where inventory of available homes continues to be low. While overall activity numbers year to date is slower than they were in 2019 at this time, the buyer activity continues to outpace seller activity. The lack of supply in the face of buyer demand has resulted in home prices holding steady. Another factor influencing buyer activity is the continued low mortgage rates. 30 year rates continue to be in the low 3s and 15 year rates are in the high 2s. With all the pent up buyer demand, plus the easing of travel restrictions, and the sunny weather we are seeing, now may be shaping up as a great time for sellers to place their property on the market.