US: Home prices surge like they did in the bubble years – Wells Fargo

Existing home sales pulled back modestly in April (-2.7%) showed data released on Friday. Analysts at Wells Fargo warn prices rose even further. They point out homes continue to sell very quickly. 

Key Quotes: 

“Existing home sales fell 2.7% in April to a still historically strong 5.85-million unit pace.”

“We expect the number of homes available for sale to rise further in coming months, as risks surrounding COVID diminish and homeowners rush to take advantage of one of the strongest seller's markets ever.”

“The median price of an existing home has surged 19.1% over the past year to a record $341,600. The median price of an existing single-family home rose 20.3% to $347,400, while the price of condominiums and co-ops rose 12.6% to $300,400.”

“Homes continue to sell very quickly, with homes sold in April remaining on the market for just 17 days, down from 18 in March and 27 days in April 2020. An astonishing 80% of existing homes sold this past month were on the market for a month or less. The lack of inventory and surge in home prices is making it harder for first-time homebuyers. First-time buyers accounted for just 31% of sales in April, down from 32% the prior month and 36% in April of last year.”