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Comparative Housing Sales from Spring 2014

By Missouri REALTORS posted 06-12-2014 02:27 PM

  


Even though home sales decreased on a year over year basis, the average price of homes sold continued to increase.

The REAL Trends Housing Market Report for April 2014 shows that housing sales declined by 6.1 percent from the same month a year ago.  This is the worst result since the recovery began in September 2011. The annual rate of new and existing home sales for April 2014 was 5.372 million units down significantly from 5.719 million units sold in April 2013. 

Even though home sales decreased on a year over year basis, the average price of homes sold continued to increase with prices up 7.3 percent in April 2014 compared to April 2013, another strong showing.

“April 2014 sales of new and existing homes reflected the decline in the affordability rate in most regions and the lack of inventory,” said Steve Murray, editor of the REAL Trends Housing Market Report. 

Housing unit sales for April 2014 decreased 8.4 percent in the Midwest, the worst showing among regional results. The West region saw a decrease of 7.3 percent, the Northeast saw a decline of 5.8 percent and the South had the smallest decline at 4.2 percent

The average price of homes sold in April 2014 increased 7.3 percent across the country, a strong showing despite the across the board decline in home sales. The West region had the best results with the average price of homes sold increasing 9.7 percent followed by the Midwest region with an increase of 7.8 percent.  The South region saw prices increase 7.1 percent and the Northeast region average prices rose 3.0 percent.

“We appear to have reached a plateau that, absent employment increases, income growth or looser underwriting standards, there is no impetus to drive housing sales higher,” said Murray. “It is clear that the negative equity is also an overhang on the market.  We also believe that given historical norms for home buying as a percent of households we are at or near the expected level of housing sales.”

REAL Trends April/ March Housing Market Report

(Versus same month a year ago)

                                       April 2014                     April 2014                       March 2014                        March 2014

                                   Closed Sales                Average Price                  Closed Sales                     Average Price

National                            -6.1%                           +7.3%                               -1.5%                                 +8.8%            

Regional Report

Northeast                         -5.8%                           +3.0%                               -0.2%                                +7.8%        

South                               -4.2%                           +7.1%                              +2.8%                                +7.9%                

Midwest                           -8.4%                           +7.8%                              -7.7%                                 +2.9%               

West                                -7.3%                           +9.7%                               -4.3%                                +12.8%


This article appeared in REAL Trends Newsletter and is being reprinted with permission of REAL Trends, Copyright 2014.
 

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