Sales of existing homes dropped 17.8% in April. This number is not surprising considering most of the country was locked down for all of April. This made it difficult to close transactions, so it’s no surprise that the market saw the largest decline in closings since July of 2010 during the height of the banking meltdown.
What did surprise the market was that home prices nationwide actually rose 7.4% to an all-time high. The inventory of homes listed for sale fell 19.7% in April, as sellers pulled their homes off of the market.
This led to the lowest April inventory of homes listed for sale the market has ever seen. Ryan Gorman, CEO of Coldwell Banker, stated that nationwide their brokerages are not seeing a decline in home prices due to the low-interest-rate environment and pent up demand.
Loan applications for new purchase loans fell only 1% year over year compared to 2019. This eye-opening statistic is good signs that buyers are doing more than kicking the tires and they are ready to jump in when they find the right property. (Source: Peter Pham US Bank)