New numbers from the National Association of Realtors (NAR) prove that homebuyers are excited to get the spring season started. With a nearly 12 percent increase in the number of existing homes sold compared to the month before, February had the largest month-over-month improvement since 2015.
Lawrence Yun, NAR’s Chief Economist, says there’s a combination of factors helping push home sales upward. A powerful combination of lower mortgage rates, more inventory, rising income, and higher consumer confidence is driving the sales rebound, Yun said. Though home prices were 3.6 percent higher than they were at the same time last year, inventory was also up. If the improvement continues, it’ll help moderate future price increases. Yun says more new home construction is needed.
For sustained growth, significant construction of moderately priced homes is still needed, he said. More construction will help boost local economies and more home sales will help lessen wealth inequality as more households can enjoy in housing wealth gains. According to Yun, the typical homeowner accumulated nearly $9,000 in housing equity over the past year.