Sales Of Previously Owned Homes Rise

Sales of previously owned homes, including single-family homes, townhomes, condominiums and co-ops, rose 1.3 percent in April, according to the National Association of Realtors. The increase was the first this year. Lawrence Yun, NAR’s chief economist, said the improvement was expected after a sub-par first quarter. According to Yun, the number of homes being put up for sale is rising and, with improved inventory expanding choices for buyers, price increases will moderate and sales should rise. This will lead to an upward trend in home sales through the end of this year. In fact, the expected improvement in for-sale inventory is already being seen. In April, for example, total housing inventory was up 16.8 percent, which represents a 5.9-month supply at the current sales pace. Generally, a six month supply is considered healthy for the housing market. Also, because of the inventory spike, price increases moderated in April, continuing a trend of slower price growth. The combination of higher levels of inventory and slower price increases should help keep affordability levels favorable across the much of the country, Yun said. More here.

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