While April home sales did fall just slightly short of attaining a record-high number, they're still higher than sales at this time last year. RisMedia.com has the scoop:
Existing-home sales increased 2.5 percent in April to a seasonally adjusted annual rate of 6.64 million units from a level of 6.48 million units in March. Last month's sales activity was 15.1 percent above the 5.77-million unit pace in April 2003 and was just 0.6 percent shy of the all-time high of 6.68 million posted in September of last year.
David Lerah, economist for the National Association of Realtors, says strong sales are likely to continue.
"Given the favorable economic backdrop and strong sales momentum, a big number was expected for April home sales and it's likely we'll see another big month in May."
He says that many of the sales we're seeing now are due to buyers' fears that rates may go up. Rates appear to be leveling off, but some still predict a future hike. Here's more rate information from the article:
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 5.83 percent in April, up from 5.45 percent in March; the rate was 5.81 percent in April 2003.
Sales will continue to be strong, in spite of higher rates. I predict strong sales for the area I'm in for quite some time, as long as rates stay under 8 percent, and then it will still be a seller's market, but the buyer demographics will change somewhat.