According to a report recently released by the National Association of Realtors, home sales have surged the most that they have in 3 years for month-over-month gains. This is exceptional news for the market as we venture through spring now that we are in April.
Existing home sales include completed transactions of single families, townhomes, condos and coop property types. Sales for these types of properties showed a significant boost by 11.8% for the month of February from the month prior in January. This was the largest gain experienced since a few years ago in December of 2015.
Lawrence Yun, NAR’s chief economist, credited a number of aspects to the jump in February sales. “A powerful combination of lower mortgage rates, more inventory, rising income and higher consumer confidence is driving the sales rebound.”
At the same time, the median home price for all property types for that month was also up by 3.6% over the same time period in 2018. This extends the trend of increases for the 84th straight month in a row. Available housing stock levels had also grown for the month coming in at 3.2% higher than February of 2018 which is exceptional news.
“It is very welcoming to see more inventory showing up in the market,” says Yun. “Consumer foot traffic consequently is rising as measured by the opening rate of SentriLock key boxes.”
Properties were available on the market for an average of 44 days for the month of February which was down from 49 days in January. This was up however, from February of last year at only 37 days.
According to Freddie Mac, the average interest rate for a commitment on a 30 year fixed rate mortgage was 4.37% in February which was surprisingly down from 4.46% for the month of January.
All in all these are great signs of health as we continue through spring market.