Modest Rise in Existing US Home Sales in April
According to National Association of Realtors, existing US Real Estate sales in April rose 2.9 percent to a seasonally adjusted annual rate of 4.68 million units in April. Despite a modest increase from March 2009 figure, it is still 3.5 percent below the level in April 2008. The national median existing-home price for all housing type was $170,200 in April, which is 15.4 percent below 2008. Distressed properties accounted for 45 percent of all sales in April, continue to downwardly distort the median price.
Lawnrence Yun, NAR chief economist pointed out the “most of the sales are taking place in lower price ranges and activity is beginning to pick up in the mid-price ranges, but high-end homes remain sluggish”.
The deeply discount prices on foreclosure properties and $8000 tax credit are attracting many first time home buyers with good credit and long term plans; particularly in California, Nevada, and Florida.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to a record low of 4.81 percent in April from 5.00 in March.
Total housing inventory rose 8.8 percent to 3.97 million existing homes available for sale, which represents a 10.2 month supply at the current sales pace. Compared with a 9.6 month supply in March. The NAR suggested that the rise in inventory was largely seasonal from sellers entering the spring market and despite this slight increase; the inventory over the past few months has remained consistently lower in comparison with a year earlier.