Existing Home Sales Fall for Third Consecutive Month

Existing single-family home sales dropped in April for the third consecutive month as a result of historically low inventory, reports MarketWatch. Last month saw a 2.7% decline in existing home sales, but the National Association of Realtors’ chief economist says conditions will improve later this year once more vaccinations are administered, resulting in more potential sellers becoming comfortable with listing. Sales for condos and co-ops increased 1.4% from March though, and the Midwest region also posted a gain of 0.8%. One positive thing to result from less sales is an increase in housing inventory, which went from a 2.1-month supply in March to a 2.4-month supply in April.

The median existing-home price in April was $341,600, a new record high that represents a 19.1% increase from a year before. Properties stayed on the market for 17 days in April on average, and 88% of homes sold last month were on the market for less than a month.

There were signs of improving inventory conditions, though. Unsold inventory was at a 2.4-month supply in April, up from a 2.1-month supply the month before.

The big picture: Most economists argue that one the biggest factors holding back the housing market right now is a lack of inventory. Unfortunately for everyone in the housing market, from home buyers to real-estate agents to mortgage lenders, it could take years to rectify the situation.

A new analysis from title insurer First American Financial Corp. examined the “Great Housing Supply Crash” of the past year — and explained how it was really years in the making.

A lot of Americans who already own homes opted not to sell them this past year, in many cases because of concerns related to the pandemic. As these homeowners start to warm to the idea of selling now that COVID cases are lower and vaccines are readily available, that should reduce some of the pressure.

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