The red-hot real estate market is showing signs of cooling, real estate brokers say: Sales of pre-owned homes in April fell 2.4% — the third month of decline — even though the median home price rose for the 122nd month in a row to $391,200.
- Sales of pre-owned homes fell for the third straight month from March to April, in a sign of a slowing market
- Forecasting expert, Lawrence Yun says
- Buyers in Miami, Las Vegas, Orlando, Austin, Sacramento and other places of interest in real estate continue to see a staggering rise in home prices.
- The median sale price of an owned home was $391,200 in April, the result of 122 consecutive months of gains.
America’s real estate market could cool off, according to a realtor group, with sales of pre-owned homes declining for the third straight month in April even as prices continue to rise.
The National Association of Realtors said this week that existing home sales, which account for the bulk of US home sales, fell 2.4 percent from March to April — hitting the lowest level since Covid-19 sales slumped in June 2020.
“High home prices and sharply higher mortgage rates have dampened buyer activity,” the group’s chief economist, Lawrence Yun, said in a statement.
“It appears that more declines are imminent in the coming months, and we will likely return to pre-pandemic home sales activity after the marked rise over the past two years.”
Miami remains one of America’s hottest and most expensive real estate markets, but a national slowdown in pre-owned home sales suggests the “remarkable rally” is coming to an end, according to the National Association of Realtors
Many of the sales recorded in April relate to contracts made in previous months — often signed before recent sharp increases in mortgage rates. Further declines are expected as these increases discourage potential borrowers.
The average 30-year fixed-rate mortgage averaged 5.25 percent this week, close to its highest rate in more than a decade, according to data from mortgage agency Freddie Mac.
While the total number of sales decreased, other market indicators remained strong.
Real estate, including single-family homes, townhouses, condominiums, and co-ops, sold quickly for high prices as demand continued to outpace supply.
The properties were only on the market for an average of 17 days.
The median pre-owned home sale price reached $391,200 in April, a 14.8 percent increase from the previous year and the result of 122 consecutive months of increases.
Skyrocketing home prices, rising mortgage rates and inflation — which hit a 41-year high of 8.5 percent in March (pictured) — contribute to the decline in some home sales, according to property market forecasters.
San Francisco, Los Angeles, New York, Washington DC, and Seattle, in recent months, have topped the list of cities people seek to leave, with Miami topping the destinations.
Homebuyers in Miami, Florida’s coastal hub, experienced the largest price hike in the country, with an average rise of 38.3% over the previous year. Las Vegas, Orlando, Austin and Sacramento also saw significant hikes.
Yoon described the “unusual” real estate market at the end of the pandemic where “sales are declining, but listed homes are still selling rapidly, and home prices are much higher than they were a year ago.”
Sales rose in the Northeast and Midwest, but declined in the South and West. All cash sales accounted for 26 percent of transactions. First-time buyers, who suffer the most from rising prices, accounted for 28 percent of sales.
President Joe Biden this week announced plans to make housing affordable, especially for first-time buyers and renters manipulated by landlords and hyperinflation.
Also this week, Huntsville, Alabama, was named the best place to live in America by US News & World Report, thanks in part to the city’s relatively affordable home prices, which average $192,667.
Huntsville, Alabama was recently ranked the best place to live in America, thanks in part to median home prices remaining at a relatively affordable $192,667, according to US News & World Report.