Home Sales Boom Heading Into the Busiest Homebuying Season of the Year

Posted by Laine Smith on 4/24/17 1:13 PM

Topics: Economy Home Buying

Despite higher mortgage rates and home prices, houses are flying off the market this spring, according to the National Association of Realtors Existing Home Sales Report released last Friday. Home resales boomed by 4.4 percent in March, the best month-to-date since February 2007.

 Spring-Home-Sales-Boom-1.jpg

©iStockPhoto/courtneyk 

Market Time Is Shrinking

Listed homes stayed on the market for an average of 45 days in February and 47 days in March 2016. Last month, homes were on the market for an average of 34 days.

Price Gains Aren’t Slowing Down

On-trend with sales, prices are still edging higher. The median price increased 3.6 percent, standing at $236,400. Year-over-year, the median home price is up 6.8 percent. In March 2016, the median home price was $222,700 and in March 2015, the median was $210,700.

Supply Is Still Short-Handed

Existing home inventory has been a highly watched component, but apparently low inventory is not holding back sales. Though the market gained 5.8 percent in March, inventory held at a 3.8-month supply.

NAR’s chief economist, Lawrence Yun, said:

“The early returns so far this spring buying season look very promising as a rising number of households dipped their toes into the market and were successfully able to close on a home last month. Although finding available properties to buy continues to be a strenuous task for many buyers, there was enough of a monthly increase in listings in March for sales to muster a strong gain. Sales will go up as long as inventory does.”

To stay up-to-date on news in the economy and housing market, as well as mortgage rates, subscribe to our weekly economic updates.

Subscribe to Weekly Economic Updates

Subscribe to Email Updates