Welcome to Extreme Investor Network, where we provide you with the latest updates on business news to help you make informed investment decisions. Today, we are diving into the real estate market, specifically focusing on the sales of previously owned homes in the Issaquah Highlands area of Issaquah, Washington.
According to the National Association of Realtors, sales of previously owned homes fell 1.9% in April from March to 4.14 million units, on a seasonally adjusted annualized basis. This was unexpected, as the forecast had predicted a slight gain. Sales were also down 1.9% from April 2023.
One factor impacting the market is the increase in mortgage rates. Lawrence Yun, chief economist for the Realtors, noted that the 300 basis point increase from the pre-Covid pace has put the market in a new territory. This increase has raised concerns about how the lock-in effect will restrain home sales moving forward.
Despite the dip in sales, the market saw an increase in total housing inventory at the end of April, up 9% month to month and 16% from the year before. However, the supply of homes priced above $1 million saw a significant boost, up 40% year over year, making that segment of the market the most active.
Tight supply has kept prices under pressure, with the median price of an existing home sold in April reaching $407,600, a 5.7% increase year over year. With strong demand leading to multiple offers, 27% of homes were sold above the list price.
First-time buyers also made a slight comeback, accounting for 33% of April sales, up from 29% the year before. The all-cash share of transactions remained relatively high at 28%.
Regionally, sales varied across the country. Sales in the Northeast and Midwest saw declines, while the South and West experienced mixed results. Median prices also varied by region, ranging from $303,600 in the Midwest to $629,600 in the West.
As we navigate through these fluctuations in the real estate market, it’s essential to stay informed and be aware of the various factors influencing home sales and prices. Stay tuned for more updates and insights on the business news that matters to you, only at Extreme Investor Network.