Wednesday, May 22, 2013

Existing Home Sales Improved Slightly in April

Existing home sales rose slightly in April to an annual pace of 4.97 million units. April’s pace improved 0.6% from March’s upwardly revised pace. The pace is at the highest level since the start of this year and 11.0% above year ago averages. Notably, April’s report is the strongest reading since the introduction of the homebuyer tax credit in the fall of 2009.

The details of the report are mixed. Single-family sales grew 1.2%, but condo sales declined 3.3%. However, both categories are up 9% and 16% respectively compared to year ago levels. Access to credit is still tight and inventory is limited.

Inventories of homes for sale increased 12% in April from the previous month but are still 14% below year ago averages. However, inventories typically rise at this time of year, during the spring selling season. Despite the housing supply rising to 5.2 months, the months of supply remain well below the 6-month mark that indicates a balanced market.

Read the NAR release.

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