April Existing Home Sales Up 10 Percent Year-Over-Year — Median Home Price Up 10.1 Percent Year-Over-Year — Yee Haw!
Images for this post are temporaraly unavailable.
As I had written earlier this year, the U.S. housing market is finally turning the corner—and that is amplified in the release of April existing housing sales and prices from the National Association of Realtors®. [As always, I invoke the “There Is No Such Thing As A National Real Estate Market” — the TINSTAANREM clause — since not all markets are the same.]
- April existing home sales rose 3.4 percent from March 2012 and were up 10 percent from April 2011, now at a Seasonally Adjusted Annualized Rate (SAAR) of 4.62 million
- Median home prices increased 3.1 percent from March 2012 and 10.1 percent from April 2011 (12 month moving average was up 1.1 percent year-over-year)
- Distressed home sales represented 28 percent of all transactions in April 2012, versus 29 percent in March 2012 and 37 percent in April 2011
- Foreclosures (which made up 17 percent of April sales) sold at a discount to non-distressed properties of 21 percent
- Short sales (11 percent of the transactions) had a discount compared to non-distressed real estate of 14 percent
- Inventory is down 28.4 percent in the past 12 months, though it rose slightly sequentially from March, and currently rests at 2.54 million units for sale
- All-cash sales dipped to 29 percent in April, down from 33 percent in March 2012 and 31 percent in April 2011
To read the entire NAR April 2012 Existing Home Sales Press Release click here.
This following charts show the 12-month moving averages of SAARs for the number of home sales and median prices. A 12 month moving average of the data reveals a true trend. Appreciate that the latest month is pulling upwards the prior 11 months of data.
Important to the current recovery is the ongoing decline in inventory. While inventory will have some noise from month to month, it remains on downward trajectory portending rising prices to continue.
The market indeed is turning the corner and finally showing some improvement.