Earlier today, NAR reported that driven by a huge increase in the Midwest (12.1 percent), existing-home sales in April rose 1.7 percent to a seasonally adjusted rate of 5.45 million. Compared to a year ago, sales are up 6.0 percent.
It’s clear this spring that very low mortgage rates and modest seasonal inventory gains are encouraging more households to buy. These low rates are certainly beneficial to buyers considering that prices continue to rise far above incomes in many parts of the country because of persistent inventory shortages. This is no more apparent than in the West, which in April saw monthly and annual sales declines.
Looking ahead, there simply needs to be more supply coming onto the market. As Lawrence Yun, NAR chief economist, put it during his remarks at our press conference: “There’s enough pent-up demand out there to push sales higher, but we simply need more inventory.”
Check out the charts below for additional insight and trends from April existing-home sales: