Sales of existing homes increased for the first time this year in April, as the housing market emerged out of the winter doldrums.
Total sales of previously owned homes rose 1.3 percent to a seasonally adjusted annual rate of 4.65 million in April, up from 4.59 million in March, the National Association of Realtors (NAR) said Thursday.
{mosads}“Some growth was inevitable after subpar housing activity in the first quarter, but improved inventory is expanding choices and sales should generally trend upward from this point,” said Lawrence Yun, the NAR chief economist.
“Annual home sales, however, due to a sluggish first quarter, will likely be lower than last year.”
Sales were 6.8 percent below the 4.99 million-unit level in April 2013.
Last month’s increase was boosted by more inventory and stable home prices.
Total homes for sale last month jumped 16.8 percent to 2.29 million, a 5.9-month supply at the current sales pace, up from 5.1 months in March.
Unsold inventory is 6.5 percent higher than a year ago, when there was a 5.2-month supply.
“We’ll continue to see a balancing act between housing inventory and price growth, which remains stronger than normal simply because there have not been enough sellers in many areas,” Yun said.
“More inventory and increased new-home construction will help to foster healthy market conditions,” he said.
The median price for all housing types in April was $201,700, which is 5.2 percent above last year.
During the first three months of the year, the median price was 8.6 percent above a year earlier.
“Current price data suggests a trend of slower growth, which bodes well for preserving favorable affordability conditions in much of the country,” Yun said.
Earlier this month, NAR reported that the market share of all-cash purchases had risen despite fewer distressed home sales and investor activity.
Distressed homes – foreclosures and short sales – accounted for 15 percent of April sales, down from 18 percent in April 2013.
The interest rate for a 30-year fixed-rate mortgage was 4.34 percent in April, unchanged from March but up from 3.45 percent in April 2013, according to Freddie Mac.
First-time buyers represented 29 percent of all buyers in April, down from 30 percent in March.
Single-family home sales rose 0.5 percent to a seasonally adjusted annual rate of 4.06 million in April from 4.04 million the previous month.
Existing condominium and co-op sales rose 7.3 percent and are at the same level as last year.
Regionally, sales gains in the West and South offset a modest decline in the Midwest while the Northeast was unchanged.
Sales slipped 1 percent in the Midwest, increased 1 percent in the South and rose 4.9 percent in the West.