Historically low inventory and quick price growth stalled home sales in the US for a few months, but new data shows the market is bouncing back.
According to the most recent Existing Home Sales Report from the National Association of Realtors®, the total existing home sales (which they define as any completed transaction, including single-family homes, condos, townhouses, and co-ops) rose 3% in February, following two straight months of declines. The seasonally adjusted annual rate is now 5.54 million, which is up from 5.38 million on January and 1.1% higher than last year.
NAR Chief Economist Lawrence Yun credits the booming economy and nationwide job growth for the increase in existing home sales. And while low inventory (and the resulting rising prices) are still an issue, the market is becoming more buyer-friendly; total housing inventory rose 4.6% in February to 1.59 million existing homes for sale. Also, according to a recent article from Realtor.com, new construction should start to hit the market towards the middle of the year.
If you’ve been interested in purchasing a home within recent months, but got discouraged by the lack of listings, now might be a good time to call your agent and dip your toes back into the water.