Housing Market Update for May 2019
Spring has sprung — and with it, April housing numbers to give us some insight into current market conditions.
Broadly speaking, home values continue to increase, inventory of existing homes remains light, interest rates remain unchanged, and with homes staying on the market on average 24 days, the seller’s market remains strong. Even in the face of a slight decrease in the seasonally adjusted annual rate of sales.
Nationally, first quarter GDP rose from 2.2 in the final quarter of 2018 to a surprising 3.2. Unemployment continues to drop and inflation falls within the Federal Reserve’s 2% target. The stock market has been a roller coaster since the very beginning of the year. With no end in sight to the increasing trade tensions between the U.S. and China, volatility remains the watchword going forward.
- $269,300 – The median existing single-family home price for April, up 3.7% year-over-year
- $251,000 – The median price for existing condos in April, up 3.4% year-over-year
- 86 – The number of months in which the median price of all existing housing types has increased
- 4.62 million – The seasonally adjusted annual rate for sales in April of single family homes, condos, and co-ops, down from 4.67 million in March and 4% below 4.81 million year-over-year
- 24 – The number of days a home remained on the market in April, down from 36 in November and down from 26 year-over-year
- 53% – Of homes sold in April that were on the market for less than month
- 4.2 – Months worth of inventory available at current sale pace in April, up from 3.8 in March and up from 4.0 year-over-year
- 32% – Of sales in April were to first-time homebuyers, down from 33% in March but the same year-over-year
- 20% – Of purchases were made with cash, down from 21% in March and the same year-over-year
- 21% – Of sellers offering incentives to buyers — 10% paid closing costs, 8% provided a warranty to buyers, and 4% remodeled
- 3% – Of sales in April were distressed sales, remaining the same as March but down by 1% year-over-year
- 16% – Of sales in April were vacation and investment purchases, up 2% year-over-year
The bottom line
Overall the economy, while strong, faces increasing tensions over tariffs, a potential presidential impeachment, and a growing deficit. From a GDP perspective the economic forecast suggests a slight slow down in Q2, while it remains to be seen if the Fed will increase interest rates at all this year.