Americans held off on purchasing homes in April amid a shrinking number of properties for sale and rising prices. The National Association of Realtors reported this week that the dwindling options for home buyers caused sales of previously owned U.S. homes to fall 2.3 percent from March to April.
Spring traditionally marks the beginning of 'home buying season' but the short supply be leading to one of the most competitive markets in recent years. Homes are being snatched up in as little as 29 days, including in San Diego County, the shortest period ever reported by the NAR.
Housing inventory is currently near a 20-year low. The shortage has grown on an annual basis for 23 consecutive months, driving up prices. Figures from the end of April showed just 1.93 million existing homes for sale nationwide – down 9 percent from a year ago. In San Diego, there is less than a three month supply of homes on the market – far less than the six months experts consider to be healthy.
Meanwhile, conforming no-point 30-year fixed mortgage rates averaging 4 percent while 15-year rates are near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.