With the economy, the weather, the bans temporarily disrupt home sales, the National Association of Realtors released a report Thursday showing another steep drop in U.s. new-home sales in the month of April.
NAR said existing home sales fell 17.8 percent to an annual rate of 4.33 million in April, after a decline of 8.5% to 5.27 million in August. Economists had expected existing home sales to decrease at a rate of 4.30 million.
The continuation of the downward spiral from new home sales to their lowest level since hitting 3.45 million in July 2010.
“The economic situation, these bans occurring from mid-March to April in most states have temporarily disrupted the sales of homes,” said NAR’s Lawrence Yun, chief economist. “But the inscriptions that are on the market are still attracting buyers and boosting home prices.”
The report said the median existing home price for all housing types in April was $286,800, up 2.2 percent from $280,700 in March and are up 7.4%, from $ 267,000 in the spring of 2019.
NAR said that there were 1.47 million homes for sale and at the end of the month of April, down 1.3% from 1.49 million at the end of the month of March, and were down 19.7 percent from 1.83 million a year ago.
The unsold inventory represents 4.1 months of supply at the current sales rate, compared with 3.4 months of supply in February and 4.2 months of supply, in the spring of 2019.
“Historically low mortgage rates are likely to remain in place for the rest of the year, and will be the key driver of housing demand is that the state of the economy regularly jonti,” Yun said. Still, more listings, and the increase in the construction of the house will be required to tame price growth.”
The report also said single-family home sales fell 16.9% to a rate of 3.94 million in April, while condominium and co-op sales were down 26.4% of 390 000.
Next Tuesday, the Commerce Department is scheduled to release a separate report on new home sales in the month of April. New-home sales are expected to drop to approximately 17.0 percent.
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