Existing-Home Sales Slump Again

[WHITT]

'Existing Home Sales' Fall For Fourth Consecutive Month

(MarketWatch) - Existing-home sales fell for the fourth consecutive month, as buyers continue to face major hurdles in the road to becoming homeowners.

Momentum in the housing market appears to be waning — at least relatively speaking. A combination of issues is to blame. The low supply of homes is certainly frustrating to buyers, some of whom may be opting to sit things out in the hopes of more properties coming to the market. And the homes that are for sale often fetch multiple offers, driving the sale price into an unaffordable territory for many — even with historically low interest rates.

"We are approaching the critical summer season, when the volume of real estate sales reaches its peak during a typical year. With four consecutive monthly declines in existing home sales, May's sales activity points to a potential moderation in growth for the remainder of 2021," said George Ratiu, senior economist at Realtor.com.

[quaint]

1. Depends on where you are looking.

Homebuyer demand is expected to remain strong this spring, but it will be tested by increasing mortgage rates. C.A.R.’s resale report for March 2021 shows that sales increased by double-digits in all major regions of the California housing market. The San Francisco Bay Area remained on top with the highest gain of 40.2 percent over last year whereas Southern California (23.3 percent) also experienced a sales increase of more than 20 percent from last year.

Source

[WHITT]

7. I Suppose

I should have included the usual disclaimer that the high-end of the housing market does not comport with normal earthly parameters.

[WarGamer]

2. I think we'll have an epic BUBBLE POP in 2022 or 2023 in the RE Market

Feels too much like 2006-2007.

Prices are IN-SANE.

Completely out of tune with reality.

[Wingus Dingus]

3. When home prices shoot up as high/suddenly as they have been,

it must be difficult to make the appraisals square up with the sales prices in a bank/mortgage situation for ordinary home buyers (meaning, people needing loans and not in a position to pony up the difference). I wouldn't want to buy right now.

[LakeArenal]

4. WI is low on supply. Newer updated houses fly out.

I have a friend house hunting. They can’t even get an appointment on a new listing they sell so fast. Each week they seem to increase $5000 a week.

[Nay]

8. Same here in the Richmond suburbs. There's a bidding war when a house comes

up for sale in our neighborhood. A few days later, the sign says "under contract."

[LakeArenal]

9. You have to have no contingencies except an inspection.

Forget about having to sell your house first.

[mnhtnbb]

5. The realtor I've used in Chapel Hill (NC) since we moved here in 2000

told me yesterday that he had 14 written offers on one of his listings over the weekend. FOURTEEN!!!

One mile south of where I live in a new development in the southwest corner of Durham--only a 15 minute drive along a lovely wooded road to where Apple will be building their new campus for 3000 employees in the Research Triangle--there is a development of homes built in 2017-18. A model home there was a resale that just closed last week and sold for $112,000. OVER its list price!!!

My Chapel Hill realtor told me that "good" houses are selling for anywhere from 10-20% over list price and often with multiple offers. He's had his own company for a very long time and said he's never seen such a strong market.

[MineralMan]

6. Well, my wife and I are closing on our next home

On Friday. So, there's another existing home sale. Our current house goes on the market at the end of July. We aren't investing in real estate. We're buying a house.