Well, with all that lead up, the time has finally come to see the proof. The National Association of Realtors Existing Home Sales Report for March showed the highest increase in home sales in 18 months, with a jump of 6.1% overall. The comparative increase, year-over-year, is 10.4%.
Some other high level statistics from the report:
- In all regions except the Northeast, the increase in home sales is paired with an increase in price.
- Inventory levels are still 4.6% below historic norms.
- Distressed home sales continue to take up a smaller portion of the whole, dropping from 14% to 10%.
What do these statistics mean for home sales?
To boil it down to the critical points, a continuous shortage in inventory, combined with still-low but increasing mortgage interest rates and stabilization in the job market has had the expected result. Potential home buyers have seen the writing on the wall and are making their move.
As noted by Lawrence Yun, Chief Economist of NAR, the “pent up demand” is driving increased activity in the market. As we move further into real estate season, it’s not likely we’ll see a shift in this trend.
Are you looking to buy a home?
If you have been toying with the idea of moving into a home this year, now is the time to meet with your local realtor and get an idea of what the market is doing in your area. The Northeast US has seen a smaller increase in sales and home costs than the rest of the country, but that will be short lived as the market catches up here.
Do your due diligence, check neighborhoods, school systems and gauge what kind of home you want to buy, then make the call and get the ball rolling with a local mortgage banker and find the home of your dreams.
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