It’s spring but nobody is buying houses The housing market remained stagnant in April, defying expectations of a rebound during the traditionally busy spring season. Despite a slight increase in existing home sales—up 0.2% compared to March’s 2.9% decline—buyers continued to hesitate, leaving real estate agents and economists puzzled. The Wall Street Journal reported that economists had anticipated a 3% rise in sales following a drop in 30-year mortgage rates below 6% at the end of February. However, the anticipated surge did not materialize, highlighting persistent challenges in the market. Buyers’ reluctance is attributed to a combination of factors. The war in Iran pushed mortgage rates back above 6%, reigniting inflation concerns and dampening purchasing power. Real estate agents cited a frozen job market and steep home prices as additional deterrents. The national median existing-home price in April reached $417,700, a record high for the month, according to the National Association of Realtors (NAR). This surge in prices has made homes less accessible, particularly for first-time buyers. Inventory levels, while up, remain below pre-pandemic norms. There were 1.47 million unsold homes on the market in April, the highest number for the month since 2019. However, this figure is still significantly lower than the 2 million average seen before the pandemic. NAR chief economist Lawrence Yun noted that a 30% increase in inventory would help balance the market, providing more opportunities for buyers and sellers to negotiate fair terms. Looking ahead, the trajectory of mortgage rates will play a critical role in determining the market’s future. Jeffrey Ruben, president of WSFS Home Lending, told the Wall Street Journal that if rates fall below 6%, sales could rebound.#iran_war #national_association_of_realtors #wall_street_journal #jeffrey_ruben #lawrence_yun
