Demystifying the Home Sales Market: A Deep Dive into Current Trends and Forecasts
As a seasoned realtor, I continuously keep my fingers on the pulse of the real estate market to provide you with the most current and comprehensive information. Today, we’re going to explore the existing home sales market, a critical component of the real estate sector.
The National Association of Realtors (NAR) recently released a report showcasing interesting dynamics in the existing home sales market. To summarize, the annual pace of existing home sales was reported to be 4.3 million units, virtually unchanged from the previous month’s 4.28 million. This figure aligns closely with the median forecast of 4.25 million units.
Going back in time, we hit the bottom of existing home sales in January, which saw 4.0 million units sold — a low that we haven’t seen since 2010. The rebound from that point has been somewhat sluggish, a trend likely attributable to the stubborn persistence of near-7% mortgage rates.
An intriguing factor at play here is the reluctance of homeowners to part ways with their homes. Many are loath to give up the low mortgage rates they secured from 2020 to early 2022. This reluctance is limiting the supply of available homes and consequently, restricting sales.
The resulting “months of supply” in comparison to the new homes market is significant, implying that it would require either a considerable duration or a meaningful drop in rates to free up more existing homes.
In terms of prices, the median existing-home price across all housing types in May was $396,100. This figure represents a 3.1% decline from May 2022’s $408,600. However, this isn’t a universal phenomenon. We observed price growth in the Northeast and Midwest, while the South and West saw prices fall.
As for how long properties typically stayed on the market in May, it was around 18 days. This is quicker than April’s 22 days but slower than the 16 days reported in May 2022.
Delving into the buyers, first-time homebuyers accounted for 28% of sales in May, a slight decrease from April but an increase from May 2022. Furthermore, all-cash sales comprised 25% of transactions in May, a drop from April but identical to the statistics from a year ago.
The regional breakdown of the percentage change in existing sales from last month (and last year) is as follows:
– Northeast: -2.0% ( -25.4%)- Midwest: -2.9% (-20.8%)- South: +1.5% (-16.5%)- West: +2.6% (-25.5%)
These figures are accurate as of June 22, 2023. For the most current data, be sure to check the source directly or reach out to me for a detailed discussion.
Understanding these trends can make all the difference when you’re looking to buy or sell a home. Stay tuned for more insights, and as always, I’m here to help you navigate the ever-changing waters of real estate.
Please note: This blog post is intended to give you a general understanding of the current state of the home sales market. For detailed advice tailored to your situation, please reach out to me directly.
Chante Earl (909)554-9015
Realty Masters and Associates
