Existing home sales grew three percent (3%) in February changing course from the previous two months which were hampered by low inventory levels and overall increases in sales prices. The report produced by the National Association of Realtors (NAR) saw the Northeast region (-12.3%) having a huge decrease in existing home sales and that was followed by the Midwest (-2.4%). Strong sales in the South (+6.6%) and West (11.4%) led to the growth for February altogether. Cold and severe weather as we have seen in New York City this winter has affected existing home sales for the period for the Northeast region.
Total existing-home sales which are completed transactions that include single-family homes, townhomes, condominiums and co-ops increased to a seasonally adjusted annual rate of 5.54 million in February which is an increase from 5.38 million in January. With the numbers for this month, overall sales are ahead of last year's pace by 1.1%. Median existing-home price increased 5.9% from the same period last year to $241,700. It is the 72nd straight month of year-over-year gains. Surprisingly, total inventory rose 4.6% for February to 1.59 million existing homes. The amount is a positive sign however is still 8.1% below the amount for the same time in February 2017 and is the 33rd consecutive month we have seen year over year inventory being lower. Unsold inventory is at 3.4 month supply which is significantly low. A healthy supply would be 6 months.
“A big jump in existing sales in the South and West last month helped the housing market recover from a two-month sales slump. The very healthy U.S. economy and labor market are creating a sizeable interest in buying a home in early 2018. However, even as seasonal inventory gains helped boost sales last month, home prices – especially in the West – shot up considerably. Affordability continues to be a pressing issue because new and existing housing supply is still severely subpar. The unseasonably cold weather to start the year muted pending sales in the Northeast and Midwest in January and ultimately led to their sales retreat last month. Looking ahead, several markets in the Northeast will likely see even more temporary disruptions from the large winter storms that have occurred in March.”Blue Harbour Property Management is a full service NYC property management company servicing the boroughs of Queens, Brooklyn, Manhattan and the Bronx. Whether it be a 1 bedroom condo or multi-family building we are able to assist our clients maximize their investments.
http://www.blueharbourpropertymanagement.com/existing-home-sales-for-february-2018-increases-despite-a-significant-drop-in-the-northeast/
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