Skip To Content

Will the Housing Market Maintain Its Momentum?

Last week’s Existing Home Sales Report from the National Association of Realtors (NAR) shows sales have dropped by 3.7% compared to the month before. This is the second consecutive month that sales have slumped. Some see this as evidence that the red-hot real estate market may be cooling. However, there could also be a simple explanation as to why existing home sales have slowed – there aren’t enough homes to buy. There are currently 410,000 fewer single-family homes available for sale than there were at this time last year.

Lawrence Yun, Chief Economist at NAR, explains in the report:

“The sales for March would have been measurably higher, had there been more inventory. Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising.”

Yun’s insight was supported the next day when the Census Bureau released its Monthly New Residential Sales Report. It shows that newly constructed home sales are up 20.7% over the previous month.

Buyer demand remains strong. With more of the adult population becoming vaccinated and job creation data showing encouraging signs, existing-home inventory is expected to grow in the coming months.

What will this mean for home sales going forward?

Fannie Mae, Freddie Mac, and the Mortgage Bankers Association (MBA) have all forecasted that total home sales (existing homes and new construction) will continue their momentum both this year and next. Here’s a graph showing those projections:Will the Housing Market Maintain Its Momentum? | Simplifying The Market

Bottom Line

Living through a pandemic has caused many to re-evaluate the importance of a home and the value of homeownership. The residential real estate market will benefit from both as we move forward.


If you have any questions about the buying or selling process, OUR TEAM CAN HELP! Call or text me today!!!!

Read Our Client Reviews: CLICK HERE

ADDITIONAL RESOURCES

  • Buyer Resources
    • Search For HomesCLICK HERE
    • Virtual Home Buying Program: CLICK HERE
    • FREE Home Buyer WebinarCLICK HERE (Mistakes to Avoid When Buying a Home!)
    • Download our FREE Home Search Mobile App: CLICK HERE
    • Ask about our credit repair program!
  • Seller Resources
  • FREE Instant Access To Your Home ValueCLICK HERE
  • FREE E-Book “Protecting Your Equity”: CLICK HERE (Learn the secrets to selling your home for MORE MONEY in LESS Time)
  • Home Sale Concierge Program: CLICK HERE
This image has an empty alt attribute; its file name is o-01.png
Comments are closed.