Home sales increased last month compared to March, according to DataQuick’s April Property Intelligence Report (PIR), yet domestic issues and uncertainty factors continue to stop sales from reaching their full market potential. DataQuick also reported that home price growth continued to increase and the number of foreclosures continued to decrease in April; an ongoing stabilization the market has been experiencing the past two months.
“The increase of sales in April is a sign of improvement; however, the continued strength and growth is questionable given impeding factors that prevent investors, sellers and buyers from actively participating in the market,” said Gordon Crawford, Ph.D., vice president of Analytics for DataQuick. “Job security, tax increases and uncertainty surrounding domestic fiscal issues, continue to hinder growth and will contribute to eventual reductions in the demand for housing.”
Crawford highlights that strict mortgage credit requirements and only moderate, increasing employment numbers decrease borrower chances of seeking and being able to purchase a house.
“The low levels as to which sales are increasing reflect tight supplies on the market, multiple offers for listed houses and homes selling at prices that are in excess of the asking price,” said Crawford. “Potential sellers aren’t entering the market as prices rise, because of their uncertainty and/or negative equity.”
DataQuick’s PIR leverages its national property database and analytics expertise to assess 42 of the largest counties in the United States using valuation trends, REO inventory trends and sales trends metrics. Key findings for April include:
►Home price growth was positive in 28 of the 42 reported counties over the last month
►Home price growth was positive in 28 of the 42 reported counties over the last quarter
►Home price growth was positive in 30 of the 42 reported counties over the year
►Sales increased in 21 of the 42 reported counties over the last month
►Sales increased in 11 of the 42 reported counties over the last quarter
►Sales increased in 23 of the 42 reported counties over the last year
►Foreclosures decreased in 25 of the 42 reported counties over the last month
►Foreclosures decreased in 29 of the 42 reported counties over the last quarter and year