April 24, 2015

Heading into May, Momentum Builds for Home Sales

Last month, we indicated that April would be a make or break month for home sales. Meaning that if, as we project, we are going to have the best year in homes sales since 2007, we need them to surpass 2013.

So, how are we doing? After lagging behind a bit last month, we are now running well ahead of 2013's pace by about 17,000 home sales, non-seasonally adjusted. While existing home sales are down 0.3%, new home sales are up 18% compared to 2013 through March.

Indicators released this week show existing home sales in March surged 6.1% to a seasonally adjusted annual rate of 5.19 million units in March, the highest annual rate since September 2013. On the other hand, after 3 straight months of gains, new home sales disappointed in March, falling 11.4% to a seasonally adjusted annual rate of 481,000 units (February sales were revised up from 539,000 to 543,000). While this news is mixed, a good sign that the positive momentum will continue is that purchase applications in over 60 of the 100 markets that MiMi tracks are up from the same time last year, including more than 20 markets that are showing double-digit increases.

All in all, things look good and we are well on track to have the best year in home sales since 2007.

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