Sales of existing homes in the United States fell for a third month in a row in April as supply continued to lag demand in what is referred to as a red-hot market, the National Association of Realtors (NAR) said on Friday
WASHINGTON (Pakistan Point News / Sputnik - 21st May, 2021) Sales of existing homes in the United States fell for a third month in a row in April as supply continued to lag demand in what is referred to as a red-hot market, the National Association of Realtors (NAR) said on Friday.
Completed transactions for lived-in single-family homes, town houses, condominiums and co-ops slipped 2.7 percent last month compared with March, the realtors group said. But year-over-year sales increased 33.9 percent.
"Despite the decline, housing demand is still strong compared to one year ago," NAR Chief Economist Lawrence Yun said in a statement. "We'll see more inventory come to the market later this year... the additional supply projected for the market should cool down the torrid pace of price appreciation."
The median existing-home price for all housing types in April was $341,600, up 19.1 percent from the April 2020 average of $286,800, as every region in the United States recorded price increases, the statement said.
"This is a record high and marks 110 straight months of year-over-year gains," the statement added.
The housing market is one of the pillars of the US economy, accounting for nearly 15 percent of Gross Domestic Product. Housing has been the star performer in the economy's recovery from the COVID-19-induced recession, which started in February 2020.
Residential construction investment has enjoyed double-digit growth since the third quarter of last year. Even so, home builders deliberately slowed activity in April to avoid advance buying of building materials such as lumber, which had rallied more than 300 percent in price this year, according to the available data.