Homes selling fast, but overall sales depressed
Posted on Wednesday, May 27, 2015 at 7:54:39 AM
Over the past few months, homes have been selling fast. However, even with the rapid pace, the overall number of homes sold is declining.
According to the National Association of Realtors, total existing-home sales dropped 3.3 percent from March to April of this year. They still increased on a yearly basis, however, and sold at a pace last seen in July 2013.
"April's setback is the result of lagging supply relative to demand and the upward pressure it's putting on prices," explained Lawrence Yun, NAR chief economist. "However, the overall data and feedback we're hearing from Realtors continues to point to elevated levels of buying interest compared to a year ago."
Yun added that low residential financing rates are one reason for the increased buyer demand as of late, in addition to job growth.
Furthermore, waning home sales don't appear to extend beyond the median-priced home. Redfin reported that luxury-home sales - properties listed for more than $1 million - actually increased during the first quarter of 2015.
Even so, prices in this segment have been declining. Overall, the housing market has been making yearly gains - at both ends of the spectrum - but is experiencing a slight dip in activity in 2015.