If annual trends hold this year, May should be a strong month for real estate. According to Lawrence Yun, NAR’s chief economist, there is a broad home sales recovery occurring in nearly every part of the country. Two trends to note are that sales have been above year-ago levels for the past 9 months while inventory has trended down from year-ago levels for the past 20 months.
What fed this growth? The home-buyer tax credit that was in effect until the end of April is being credited for preserving up to $1 trillion in housing wealth, according to Yun. Single-family home sales are over 13% higher than a year ago.
Home prices have stabilized and mortgage interest rates are historically low. There is a sense that the market is turning and conditions are optimal in most of the country.
