Home sales started off the year strongly according to recent data from the National Association of Realtors (NAR). Nationally, 5.62 million existing-homes sold in the first quarter making it the highest pace of sales since 2007. Compared to the previous quarter, first quarter sales were 1.4% higher on a seasonally adjusted annual rate. While the news was a highlight for the housing market, the NAR cautioned that home prices are anticipated to continue rising as housing inventory remains low and buyer demand remains high.
The median price for existing-homes was $232,100 nationally, which was 6.9% higher in the first quarter than the first quarter of 2016. Yet, inventory was down by 6.6% year-over-year with the average supply at only 3.7 months. New home construction also showed signs of slowing when housing starts declined 2.6% between March and April.
NAR Chief Economist Lawrence Yun stated, “Last quarter’s robust pace of sales was especially impressive considering the affordability sting buyers experienced from higher prices and mortgage rates. High demand is poised to continue heading into the summer as long as job gains continue. However, many metro areas need to see a significant rise in new and existing inventory to meet this demand and cool down price growth.” To read the full article, visit http://bit.ly/2qtmBI3.