Sales Edge Up as More Homes Come Onto the Market

Sales of previously owned homes edged up 0.6% in April from the month prior and there was a noticeable increase in homes coming on the market, according to the National Association of Realtors.

NAR reported Wednesday morning that sales of existing single-family homes rose to a 4.97 million seasonally adjusted annual rate in April from a 4.94 million rate in March. The March figure was revised upward from 4.92 million.

NAR chief economist Lawrence Yun noted that the limited inventory of homes for sale and tight credit has constrained sales.

However, the inventory of existing homes for sale rose 12% from March to 2.2 million homes in April, the highest level since September 2012.

In April, “we started to see improvement in the number of homes for sale,” said Re/Max chief executive Margaret Kelly said. “It may take a few more months, but as prices rise and more homeowners gain positive equity, we should see an increase in the inventory of homes for sale, resulting in a much better selection for potential homebuyers.”
Wednesday’s report shows the median sales price was $192,800 in April, up 11% from a year ago.

However, the number of listed homes for sale is 13.6% below the listings in April 2012.
The NAR report also shows that 32% of sales were all-cash transactions and only 18% of sales involved foreclosures and REO.

Cash transactions were up from 29% in April 2012 and distressed sales were down from 28% a year ago.