Neighborhood Inscope

National Existing Home Sales Fall For 14th Straight Month, While The West Was Up 1.8% Month Over Month. What Does This Mean For Prices? We Give Our May Price Forecast

By Dr Denver H. Bubble

Tue May 21 2019

Hopefully, everyone is staying warm on this snowy May day. It is fitting weather giving the slowdown in existing home sales.

National existing home sales declined 0.4% in April 2019 after falling 4.9% month over month in March 2019. This is worrisome because during this two-month period mortgage rates have been falling to almost a one-year low. This is also the 14th month in a row of annual declines, which now makes it the longest stretch of declines since the housing crisis that occurred over a decade ago.

National single-family units fell 1.1% month over month while condos were up an impressive 5.6% in April 2019. Housing supply increased nationally from 3.8 to 4.2 months, which is the highest since October 2018, this is a good sign for lower long term prices. A healthy market typically has 6 months of supply so nationally there is still a shortage of existing homes for sale.

The Northeast was hardest hit down 4.5% month over month and our home region of the West up 1.8%. This is consistent with the strong April data we saw that had single-family housing hitting an all-time high for home prices.

We see May 2019 average single-family home price in the range of $541,000 to $547,000 based on this data. We have also added a new Disque commenting section and updated our social media buttons, tell us what you think in the comments or over social media.


Image source: Zero Hedge