Steel Markets

Existing Home Sales Keep Momentum for 2nd Month

Written by Sandy Williams

May 21, 2016

The National Association of Realtors reports existing home sales in April rose 1.7 percent from March for a seasonally adjusted annual rate of 5.45 million. Sales were 6.0 percent higher than in April 2015.

“Primarily driven by a convincing jump in the Midwest, where home prices are most affordable, sales activity overall was at a healthy pace last month as very low mortgage rates and modest seasonal inventory gains encouraged more households to search for and close on a home,” said Lawrence Yun, NAR chief economist. “Except for in the West — where supply shortages and stark price growth are hampering buyers the most — sales are meaningfully higher than a year ago in much of the country.”

Inventory continues to be tight at 2.14 million homes for sale at the end of April. Inventory increased 9.2 percent from March but is 3.6 percent lower than a year ago. At the current sales pace, inventory is at a 4.7 month supply, up from 4.4 months in March.

Single-family home sales increased 0.6 percent in April to a SAAR of 4.81 million and were 6.2 percent higher than April 2015.

Condo and co-op sales surged 10.3 percent to a SAAR of 650,000 units from 580,000 in March. Condo sales were up 4.9 percent from a year ago.

The median existing home price was $232,500 in April, up 6.3 percent year over year. Single family homes were at a median price of $233,700, a gain of 6.2 percent from April 2015. Median price for condos increased 6.8 percent year over year to $223,300.

Sandy Williams

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