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REAL ESTATE RESOURCE: COASTAL ASSOCIATION OF REALTORS /OCEAN CITY TODAY
EARLY-JUNE 2022
Sales of existing homes continue to decline (WASHINGTON) – Existinghome sales recorded a third straight month of declines, slipping slightly in April, according to the National Association of Realtors. Month-overmonth sales were split amongst the four major U.S. regions, with two areas posting gains and the other two experiencing waning in April. Yearover-year sales struggled, as each of the four regions reported dips. Total existing-home sales, completed transactions that include single-family homes, townhomes, condominiums and co-ops, slid 2.4 percent from March to a seasonally adjusted annual rate of 5.61 million in April. Year-over-year, sales dropped 5.9 percent (5.96 million in April 2021). “Higher home prices and sharply higher mortgage rates have reduced buyer activity,” said Lawrence Yun, NAR’s chief economist. “It looks like more declines are imminent in the upcoming months, and we’ll likely return to the pre-pandemic home sales activity after the remarkable surge over the past two years.” Total housing inventory at the end of April amounted to 1,030,000 units, up 10.8 percent from March and down 10.4 percent from one year ago (1.15 million). Unsold inventory sits at a 2.2-month supply at the cur-
rent sales pace, up from 1.9 months in March and down from 2.3 months in April 2021. “Housing supply has started to improve, albeit at an extremely sluggish pace,” said Yun. He also noted the rare state of the current marketplace. “The market is quite unusual as sales are coming down, but listed homes are still selling swiftly, and home prices are much higher than a year ago,” said Yun. “Moreover, an increasing number of buyers with short tenure expectations could opt for 5-year adjustablerate mortgages, thereby assuring fixed payments over five years because of the rate reset,” he added. “The cash buyers, not impacted by mortgage rate changes, remain elevated.” The median existing-home price for all housing types in April was $391,200, up 14.8 percent from April 2021 ($340,700), as prices increased in each region. This marks 122 consecutive months of year-overyear increases, the longest-running streak on record. Properties typically remained on the market for 17 days in April, equal to both the number of days in March 2022 and in April 2021. Eighty-eight percent of homes sold in April 2022 were on the market for less than a
month. First-time buyers were responsible for 28 percent of sales in April, down from 30 percent in March and from 31 percent in April 2021. NAR’s 2021 Profile of Home Buyers and Sellers reported that the annual share of first-time buyers was 34 percent. All-cash sales accounted for 26 percent of transactions in April, down from 28 percent in March and up from the 25 percent recorded in April 2021. Individual investors or secondhome buyers, who make up many cash sales, purchased 17 percent of homes in April, down from 18 percent in March and equal to 17 percent in April 2021. Distressed sales – foreclosures and short sales – represented less than 1 percent of sales in April, equal to the percentage seen in March and down from 2 percent in April 2021. According to Freddie Mac, the average commitment rate for a 30-year, conventional, fixed-rate mortgage was 4.98 percent in April, up from 4.17 percent in March. The average commitment rate across all of 2021 was 2.96 percent. Realtor.com’s Market Trends Report in April shows that the largest year-over-year median list price growth occurred in Miami (+38.3
percent), Las Vegas (+32.6 percent), and Orlando (+30.7 percent). Austin reported the highest growth in the share of homes that had their prices reduced compared to last year (+6.8 percentage points), followed by Las Vegas (+5.3 percentage points) and Sacramento (+4.7 percentage points). Single-family and Condo/Coop Sales Single-family home sales decreased to a seasonally adjusted annual rate of 4.99 million in April, down 2.5 percent from 5.12 million in March and down 4.8 percent from one year ago. The median existing single-family home price was $397,600 in April, up 14.8 percent from April 2021. Existing condominium and co-op sales were recorded at a seasonally adjusted annual rate of 620,000 units in April, down 1.6 percent from March and down 13.9 percent from one year ago. The median existing condo price was $340,000 in April, an annual increase of 13.1 percent. “As we find ourselves in the midst of a massive housing shortage, NAR continues to work with leaders across the private and public sectors to help close this deficit,” said NAR President Leslie Rouda Smith, a Realtor from Plano, Texas, and a broker associate Continued on page 16
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