Highlights of the National Real Esate Market

Existing home sales strengthened in March to 5.35 million, up 6.5 percent from February and 16 percent from last March. This is the ninth consecutive month of year-over-year increases. According to NAR's chief economist, the “home-buyer tax credit has been a resounding success,” increasing demand and stabilizing the market. In March, a whopping 44 percent of sales were from first-time buyers.

What is Inventory Like?

The "bad" news is, total housing inventory rose slightly to 3.58 million in March, representing an eight month supply of sales (if homes continue to sell at the current pace consistently and no new homes come on the market). However, compared to the previous year, there are now 1.8% fewer homes on the market. This is the twentieth consistent month of inventory decline when compared to the previous year--one of several indicators that the market will likely “bottom out” in the next few months, according to NAR.

Affordability

Affordability remains near record levels, supported by the lowest mortgage rates in decades, low home prices, and the first-time home buyer tax credit. The home price-to-income ratio continues to remain well below the historical average of 25 percent. The ratio now stands at 14.7 percent.

Sources: National Association of Realtors, Freddie Mac