With more of the sales focusing on lower-priced homes, existing home sales for last month is reported to have seen an increase.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – increased 2.9 percent to a seasonally adjusted annual rate1 of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March, but were 3.5 percent below the 4.85 million-unit level in April 2008.
From the three price ranges – low, medium, and high, many are in the lower range while demand in mid-priced houses is also picking up. Those in the more expensive range is still sluggish, says Lawrence Yun, an economist with NAR (Nat’l Assn. of Realtors).
“Because foreclosed properties will likely be released into the market over the rest of year, it is critical that distressed homes be quickly cleared from the market. Fortunately, home buyers are being attracted to deeply discounted prices and are bidding up many foreclosed listings, particularly in California, Nevada, and Florida – this will set the stage for healthy market conditions going forward.”
Calculated Risk was also quick to point out that:
Typically inventory increases in April, and then really increases over the next few months of the year until peaking in the summer. This increase in inventory was probably seasonal, and the next few months will be key for inventory.
Let’s see how the demand and supply interplay comes in here within the next few months.
Find the whole report on the home sales HERE.