QUOTE OF THE WEEK… “In April the sweet showers fall…” –Geoffrey Chaucer, Prologue to ‘The Canterbury Tales’
INFO THAT HITS US WHERE WE LIVE… A shower of home purchases sure sweetened the real estate market in April, as Existing Home Sales gained 0.6% for the month, hitting an annual rate of 4.97 million units. This put them up 9.7% over a year ago, reaching their highest sales pace since November 2009, when they were helped along by an $8,000 homebuyer tax credit. No government largesse is needed now to lure buyers, and the median price of an existing home is up 11.0% from a year ago, the supply at 5.2 months.
April was a sweet month for new home purchases too. New home sales were up 2.3%, to a 454,000 annual rate, and are now up a solid 29.0% versus a year ago. The faster sales pace meant that a 5,000-unit increase in inventories did not push out the 4.1 months’ supply. With the number of completed new homes at a record low, buyers are moving quickly. The median new home selling price is up 14.9% over a year ago. In addition, the FHFA index of prices for all homes financed by conforming mortgages was up 1.3% in March and is up 7.2% over a year ago.
DID YOU KNOW?… An online real estate listing site calculated that national home prices are still 7% undervalued in Q2 of 2013.