Housing market slowed down by 3.3% in United States during the month of April 2015, the National Association of Realtors reported on May 21st 2015. Lowest levels of sales by price were on the price range below 100K. However, Realtors are confident the housing market will rebound during the summer as they see April’s slow-down as transitory.
Lawrence Yun, chief economist at the NAR, said on Wednesday that current existing housing April statistics failed to keep pace with the gain seen in March. “April’s setback is the result of lagging supply relative to demand and the upward pressure it’s putting on prices”. Yun statement actually went against the evidence provided by NAR itself, for which the housing inventory increased by 10% to 2.22 million existing homes available for sale. Therefore, someone in between sellers and buyers must be slowing down the housing market.
Although the slow-down may be associated with the business season, there are few economic arguments to justify April’s pace. Furthermore when the interest rate for a 30 years commitment fixed-rate mortgage continued to decline to 3.67% during the same month, according to Freddi Mac. Additionally, the average house price for the single-family home sold in April was $221.200. So, the question we pose is Who is holding back the housing market?