In last week's report "Existing Home Sales Report" of the National Association of Realtors (NAR) shows sales fell 3.7% compared to the previous month. This is the second consecutive month that sales have fallen. Some see this as evidence that the booming housing market may be cooling off.
However, there may also be a simple explanation as to why existing home sales have declined - there are not enough houses to buy.
There are currently 410.000 fewer houses (single families) available for sale than there were at this time last year.
Lawrence Yun, chief economist of the NAR, explains in the report:
"March sales would have been substantially higher had there been more inventory. The days of available homes on the market are fast, multiple offers are prevalent, and buyer confidence is rising."
Yun's vision was confirmed the next day, when the Census Bureau released his Monthly Report of New Residential Sales. This shows that Sales of newly built homes increased by 20.7% compared to the previous month.
Buyer demand remains strong. With more of the adult population being vaccinated and job creation data showing encouraging signs, the stock of existing homes should grow in the coming months.
What will this mean for home sales going forward?
Fannie Mae, Freddie Macand the Mortgage Bankers Association (MBA) have predicted that total home sales (existing homes and new construction) will continue to rise this year and next. Here is a chart showing those projections:
Summary
Living during a pandemic has caused many to reevaluate the importance of a home and the value of property. The residential real estate market will benefit from both as we move forward.
Are you in doubt?
Now that you understand that the market is very hot and will continue with inventory pressure and this can generate gains for those who invest. We can help you understand the behavior of the real estate market and thus consider investing in vacation homes in orlando. To take advantage of all the tips we have brought to you and go even deeper, you can talk directly to our relationship agents. They are always happy to talk to you with any questions you may have about investing in Florida.
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