Existing Home Sales and Prices Jump

The National Association of Realtors reported today that May sales of homes that have been previously occupied (the largest segment of homes) jumped 4.9% from April. Existing Home Sales came in at an annualized rate of 4.89 million units which handily beat the market expectations of 4.73 million units. The median price rose to $213,400 which is a 5.1% increase over the past year (May 2013 to May 2014). The reason for the spike in sales? Is it interest rates? Nope, its inventory. Home Sales had been suppressed even while fixed mortgage rates hit their lowest levels for 2014 due to a very tight supply of homes available for sale. Since home prices have been increasing at a moderate pace, many homes that were "under water" are now back into positive equity and these homeowners are now finally able to put their homes on the market.

National Housing Trend Report

The realtor.com National Housing Trend Report for April 2014 shows nationally, the number of single-family homes for sale and their prices continue to rise, revealing a healthier real estate marketplace than a year ago and strong seller confidence.

Data from realtor.com reveals April home inventories are up a robust 14.2 percent compared with April 2013.

 Median list price rose by 6.5 percent to $207,500 compared to last year. Median age of inventory is 86 days which is a 6.2 percent increase compared to a year ago.

The combination of median list price rising above $200,000 and a double-digit home inventory increase is an indication that the marketplace is becoming more balanced.

Is Your Home in the Summer Spirit?

Is Your Home in the Summer Spirit?