Existing-home sales in March were 5.4% lower than March 2018, and 4.9% lower than February, as reported by the National Association of REALTORS® (NAR).
“Home sales in February experienced their second – strongest monthly gain ever. The spurt in February was most likely due to mortgage rates coming back in line after rates for 30-year mortgages went from 5% toward the end of last year, down to 4.17% last week “It is not surprising to see a retreat after a powerful surge in sales in the prior month,” says , chief economist at NAR. “The impact of lower mortgage rates has not yet been fully realized.”
Although inventory is up slightly, the decline in the volume of existing-home sales is definitely related to the lower number of homes available for sale. We’ve been tracking inventory levels on the North Fork over the past 20 years. The number of homes for sale on the North Fork is down 25% compared to what it was then; when you factor in population growth, the decline is even more significant.
As a buyer, you are facing fewer choices because of the lower inventory, something you cannot control. But if you delay your planned purchase you may lose an opportunity that you can control - favorable mortgage rates! The rates are lower now – how much longer rate will be low, no one knows – but they are bound to go up. Now is a great time to act if you’ve been waiting to make a purchase. Take advantage of lower rates now, make compromises that you can live with on your home purchase - after all, it can be updated or renovated. Most likely you’ll want to make it your own and if you invest wisely, you will recoup your investment when you decide to sell.
Call us at Beninati Associates 631-765-5333 – we can help you sort out the trade-offs and select the home you want! At Beninati Associates – we listen, we care, and we get results!
Sources: Existing-Home Sales Declined by 4.9% in March, Laura Kusisto, The Wall Street Journal, Tuesday, April 23, 2019, page A2. Backtrack for Existing-Homes: Can Lower Rates Revive Them? RIS Media News, April 24, 2019.