In April, existing home sales in the United States recorded a decline according to the National Association of Realtors (NAR). All four major US regions saw sales decline month over month. When looking at year-over-year performance, sales declined in the Northeast, Midwest, and South, while they increased in the West. Total existing home sales fell 1.9% from March to a seasonally adjusted annual rate of 4.14 million in April. On an annual basis, sales decreased by 1.9% compared to April of the previous year, when sales were 4.22 million.
“Home sales have changed little overall, but the high-end market is seeing big gains due to increased supply coming into the market,” he said. This situation can be better analyzed by looking at some influencing factors: Change in supply and demand: The decline in sales may be the result of a change in the balance between supply and demand in the real estate market. If there is an increase in supply without a corresponding increase in demand, this may lead to a decline in sales.
Economic Factors: The impact of economic factors, such as interest rates, inflation, and jobs, may affect people’s ability to purchase homes. If there are general economic improvements, this may increase demand for homes, thus boosting sales.
Demographic changes: Changes in population and demographics, such as increasing population and changes in age structure, may affect the real estate market. An increase in population may lead to increased demand for homes, while changes in age structure may lead to a similar effect. Factors related to declining sales and increased supply can include: Increased supply: Lawrence Yuen points to increased supply coming to the market as a reason for higher sales in the high-end market. There may be an increase in the number of homes available for sale
Balancing supply and demand in the real estate market to ensure its stability
General Economic Influences: Economic factors such as interest and inflation may affect individuals’ willingness to purchase homes. Higher interest rates may increase the cost of a mortgage and thus reduce people’s willingness to buy. On the other hand, lower interest rates may stimulate demand for homes and boost sales.
Regional and Local Factors: Regional and local factors such as changes in the local labor market, economic development and local real estate policies may affect home sales in particular areas.
It requires a deeper analysis of available data and information to determine the exact factors influencing the decline in existing home sales in April and how they impact the real estate market. It is important to have a reliable source of data and statistics when writing the article to support the information and better analyze the situation.
The data I put forward shows that there was an increase in unsold housing inventory at the end of April by 9% compared to March, and by 16.3% compared to last year. Additionally, the median price of existing homes increased 5.7% from the previous year. Unsold housing inventory increasing by 3.5 months at the current sales pace compared to 3.2 months in March and 3.0 months in April 2023 is a sign of increasing supply in the real estate market. This means it takes longer to sell currently available homes.
Regarding homes priced at $1 million or more, there was a significant increase in inventory and sales of 34% and 40%, respectively, compared to last year. This indicates a strong demand in the high price segment of the real estate market. It is important that supply and demand in the real estate market be balanced to ensure its stability.
Real estate market performance in different regions
Data indicates a decline in existing home sales in several areas of the United States. In the Northeast, sales were down 4% since March, and the median home price was $458,500, an increase of 8.5% from the previous year.
In the Midwest, sales were down 1% compared to the previous month, and the median home price was $303,600, an increase of 6% from April 2023. In the South, sales were down 1.6% compared to March, and the median home price was $366,200, an increase of 3.7% year over year. the previous. In the West, sales decreased 2.6% from last month, but increased 1.3% from the previous year, and the median home price was $629,600, an increase of 9.3% from April 2023.
This data indicates variation in the performance of the real estate market in different regions. However, keep in mind that these numbers may be affected by multiple factors such as local supply and demand, economic changes, and region-specific demographic factors.
The Brokers Confidence Index is an index used to measure the confidence and attitudes of real estate brokers in the real estate market. According to the aforementioned data, properties typically stayed on the market for 26 days in April, compared to 33 days in March, but increased from 22 days in April 2023. This reflects an improvement in the speed of selling properties.
It was also noted that first-time buyers were responsible for 33% of sales in April, compared to 32% in March and 29% in April 2023. This reflects an increase in the proportion of new buyers in the market. According to the 2023 NAR report, the share of first-time buyers was on the rise, reaching 32%.
All-cash sales accounted for 28% of total transactions in April, which is on par with last month and last year.
