According to a report recently released from the National Association of Realtors, home sales have increased the most that they have in 3 years for month-over-month gains. This is good news as we kick off spring market now that April has arrived.
Existing home sales are defined by completed transactions of single families, townhomes, condos and coop properties. Sales for these dwellings saw a large boost by 11.8% for the month of February from the month prior in January. This was the most significant gain experienced since 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 in 2018. This maintains the trend of increases for the 84th straight month in a row. Available housing levels had also increased for the month coming in at 3.2% higher than February of 2018 which is excellent 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 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 2018 at only 37 days.
According to Freddie Mac, the average rate for a commitment on a 30 year fixed rate mortgage was 4.37% for February which was down from 4.46% for the month of January.
In the end, these are all great signs of health as we progress into spring market.