The recovery of the U.S. housing market now appears to be well under way. While demand is still high even with credit conditions constraining buyers, the low level of inventory is having a significant effect in most markets.
Due to current market conditions, April saw a significant jump in sales velocity with median days on market falling to 46 days from the previous month’s 62 days with 44% of homes selling within one month.
According to NAR Chief Economist Lawrence Yun, April typically sees the most significant gain in inventory in any given year, meaning low levels of inventory are likely to persist throughout the year. Prices continued to rise in April, marking the fifth consecutive month of double-digit gains in median price. With affordability still at historically high levels, the market continuing to improve, and inventory lending advantage to sellers, it could be an opportune time for a well-informed buyer or seller to enter the market.
Key point from video: How buyers can find a home in a seller’s market!
Jay Papasan discusses that 89% of buyers start their search online. The difficulty is that what is online now, may not be there tomorrow. In fact, in a sellers market, the information posted may be out of date the instant the home is listed on the MLS. That’s where Andy Reynolds can help you locate Lake Wylie Real Estate with up to date information; or, even before the home is listed on the MSL.
If you are considering Lake Wylie Waterfront Real Estate, contact Andy. It is important to have a professional help guide you through this changing Lake Wylie real estate market!
Home sales in April reached a seasonally adjusted annual rate of 4.97 million, a 0.6% increase from March and a 9.7% increase from April of 2012. This is the fastest annual sales pace the market has seen since the 2009 tax credit with April being the twenty-second consecutive month of year-over-year gains. Even with these gains, the market is still being constrained by tight credit and inventory according to NAR Chief Economist Lawrence Yun. “The robust housing market recovery is occurring in spite of tight access to credit and limited inventory.” says Yun. “Without these frictions, existing-home sales easily would be well above the 5 million unit pace.”
Median home price reached $192,800 in April, an increase of 4.6% from March and a 11% increase from the same month last year. This makes April the fourteenth consecutive month of year-over-year price gains and the 5th consecutive month of double-digit gains. The last time the United States saw this many consecutive gains in median house price was in the lead up to the housing crisis from April 2005 to May 2006.
Inventory- Month’s Supply
Inventory saw significant gains in April, rising 11.9% from March levels to a supply of 5.2 months. While levels have reached a high for 2013, the April supply is still 13.6% lower than what we saw in April of 2012 and is still representative of a firm seller’s market on the national level.
Interest rates ticked up to 3.59% this month. With yields on treasuries rising due to overall economic recovery and anticipation of the Federal Reserve cutting back on monetary easing, we could see mortgage rates slowly trend up in the future.