Yet another month of missing for-sale existing home inventory and rising median prices for existing home sales.
WASHINGTON (May 24, 2017) — Stubbornly low supply levels held down existing-home sales in April and also pushed the median number of days a home was on the market to a new low of 29 days, according to the National Association of Realtors®.
Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, dipped 2.3 percent to a seasonally adjusted annual rate of 5.57 million in April from a downwardly revised 5.70 million in March. Despite last month’s decline, sales are still 1.6 percent above a year ago and at the fourth highest pace over the past year.
For-sale inventory of existing homes remains in the doldrums as the median price of existing homes continues to rise rapidly.
We see the same limited inventory effect in existing home sales MONTHS SUPPLY. As the months supply collapses, median prices for existing home sales increases rapidly.
I wonder if The Fed was wise to keep The Fed Funds Target Rate at near zero and engage in a third round of quantitative easing (QE3)? Particularly when housing inventory was declining (meaning that low-rate funding was chasing scarce housing)?
As Verbal Kint said in The Usual Suspects, “And like that, (the for-sale inventory) was gone.”