During a time of year when sales begin to increase as we move into the peak sales season that occurs every summer, this trend did not occur in April as closings dropped 7.6% from March across the top 49 metropolitan areas throughout the country.
In addition, according to the RE/MAX National Housing Report the median sales price rose 2.3% to $409,000 in April month-over-month; inventory also increased by 1.8% to 1.3 months of supply.
“The data tells a story, but it’s just one side of the story,” says RE/MAX, LLC President and CEO Nick Bailey. “Sales may be down across the U.S. as move-up buyers, who like their current mortgage rate, choose to stay in their homes. But first-time homebuyers are active and those entering the market have an edge as sellers are negotiating more and giving buyers a chance.”
The Milwaukee metro’s low inventory levels are pushing home prices up and causing negotiations of another sort says John Gscheidmeier, Broker/Owner of RE/MAX Service First in Waukesha, Wisconsin. “Sellers are experiencing multiple offers again, with buyers waiving inspections and adding an appraisal gap coverage. This gives the seller some assurance that the buyer will help cover the ‘gap’ if the home doesn’t appraise at the purchase value, which is giving some sellers confidence to enter the market.”
Other notable metrics as highlighted by RE/MAX includes:
- The median sales price has increased 6.2% since January after dropping 9.6% the previous seven months.
- Months’ Supply of Inventory in April was 1.3, unchanged from March but above the 1.0 a year ago.
- April’s average close-to-list price ratio was 99%, meaning that on average, homes sold for 1% less than the asking price. A year ago, it was 103%.
- Homes sold in April were on the market for an average of 33 days—six days less than March but 10 days longer than a year ago.
Click here to view the report in its entirety, including breakdowns of city-level data.
