Sales of previously owned homes fell less than one percent in May, according to new numbers from the National Association of Realtors. The month-over-month decline, though slight, was the fourth consecutive monthly decrease for existing-home sales. Lawrence Yun, NAR's chief economist, says the issues currently holding sales back are expected to improve in the months ahead. “Lack of inventory continues to be the overwhelming factor holding back home sales, but falling affordability is simply squeezing some first-time buyers out of the market,” Yun said. “The market's outlook, however, is encouraging. Supply is expected to improve, which will give buyers more options and help tamp down record-high asking prices for existing homes.” In the meantime, home buyers should expect a competitive and fast-moving market. In fact, nearly nine out of ten homes sold in May were on the market less than a month. The typical property was sold in just 17 days. At that pace, buyers need to be prepared and ready to move quickly when they find a home they'd like to buy.

People tend to choose where to live based on a few basic factors. Traditionally, we want to live somewhere close to our family, our friends, and our job. But with more Americans working remotely, one of those three factors has been eliminated and it's led to an increase in prospective home buyers who are considering moving to a new area. The trend began shortly after the coronavirus' onset but has persisted. In fact, according to one new analysis, 31.4 percent of buyers in April and May were looking to move to a new metro. That's up from 27 percent last year at the same time. It's also well above pre-pandemic levels. Affordability seems to be the main motivator. Americans who work and live in areas where the cost of living is higher are looking to take their salary and move somewhere more affordable. But while the idea is a good one, it's also a common one. And in some cases, the influx of home buyers is now threatening to drive prices higher in those once-affordable neighborhoods. 

Housing market conditions have been pretty consistent over the past few years. Inventory and mortgage rates have remained low while buyer demand and home prices have continued to increase. Even during a global pandemic, conditions remained remarkably steady. There are a number of reasons for this and the latest outlook from Fannie Mae's Economic and Strategic Research Group highlights a few. But, Doug Duncan, Fannie Mae's senior vice president and chief economist, says the imbalance between supply and demand is the main issue. “Strong demand for housing continues to run up against a long-running lack of supply,” Duncan said. “We've seen this disconnect lead to rapid house price gains over the past year … and many of the supply constraints that home builders face are likely to persist in the near term, so this upward pricing pressure is not likely to be as transitory as many of the current inflation drivers.” In other words, home buyers shouldn't expect conditions to change too dramatically in the near future.

Before you can shop for a house to buy, you have to make sure you'll be able to get a loan. After all, there's no point in falling in love with a home only to discover it's out of your price range – or worse, you aren't able to get approved for a mortgage. That's why meeting with your lender is the first step of the home buying process. It's how you know what you can spend on a house and what the terms of your loan will be. But the standards that are used to determine whether and how much you're able to borrow aren't fixed. In other words, it can be harder to get approved for a mortgage at some times and easier at others. That's why the Mortgage Bankers Association tracks mortgage credit availability each month. Their Mortgage Credit Availability Index measures whether lending standards have tightened or loosened. In May, the index found that lending standards loosened, making it easier for prospective home buyers to secure financing. In fact, mortgage credit is now more available than its been since the pandemic began last year. And that's good news for home buyers, since it means they're more likely to be approved when applying for a loan.

The things that motivate homeowners to sell stay pretty consistent through the years. Mostly, they're personal. Whether it's because they need a bigger house to accommodate a growing family or they want to move into a smaller, more manageable home because the kids have moved out and they no longer need the space, life usually dictates when it's time for a change. So, it's no surprise that a recent survey of potential home sellers found the top reason they're selling is that their home no longer meets the needs of their family. What is surprising is that the second most common answer was profit. The survey, conducted by the National Association of Realtors' consumer website, found that 24 percent of respondents said they were planning to sell because they thought they could make a profit based on current market conditions. George Ratiu, the site's senior economist, says Americans know they're in a seller's market. “Low mortgage rates and a lack of available homes for sale have created a strong seller's market, and these survey results show that homeowners think that they have the upper hand if they list their home soon,” Raitu said

Selling a house comes with a long to-do list. You've got to get the house ready for showings, clear out the clutter, and fix any lingering maintenance issues you've been neglecting. You also have to think about the price you'd like to get for it and where you're moving to, when, and how. In other words, there's a lot to do and think about. Which is why you may've never considered which day of the week is the best to list your home. But, according to one new analysis, it makes a difference. In fact, homes that are listed on a Thursday sell faster on average and are more likely to sell above list price compared to homes listed on other days of the week. Homes listed on a Sunday, for example, were found to stay on the market eight days longer than those listed on Thursdays. Homes listed on Saturdays or Mondays took seven days longer to sell. It makes sense, if you think about it. Thursdays are when home buyers are likely beginning to think about their weekend and whether or not there are any available homes they'd like to tour. Which makes it the optimal day for sellers to get their home in front of the most home shoppers.

In most cases, when you buy something, you don't get to negotiate the price. If you're buying a refrigerator, for example, you don't make an offer. You pay whatever the store says it costs. Buying a house works a little bit differently. That's because, the price a home lists for isn't necessarily the price it sells for. Depending on market conditions, buyers may be able to get a house for less than its list price or, at other times, they may have to pay more. That's particularly true in today's market. A lower-than-normal number of homes for sale means buyers these days often have to compete with other buyers to get their offer chosen. Most often, that means paying more than the homeowner's asking price. But how often should prospective buyers expect to have sweeten their offer to get the home they want? Well, according to one recent analysis, at the end of May, more than half the homes sold were sold above list price. In fact, 51 percent of homes sold for more than their list price, that's up from just 26 percent last year at the same time.

Last year, after the coronavirus' onset, there was a lot of talk about how Americans were looking to move from city centers into the suburbs and exurbs. The pandemic had us staying at home more and more time in the house led to a wave of home buyers with a freshly updated wishlist. Space, privacy, and affordability led the list of features buyers were now focused on finding. In short, they wanted a bigger place with more outdoor space and a lower monthly cost. So how'd they do? Well, according to one recent survey, pretty well. In fact, 80 percent of those buyers said they're happier now and had no regrets about their decision to move to a new area. Many of them also reported having more disposable income and lower housing costs than they did before they moved. And while about 15 percent said they had some regrets about their move, that's remarkably low considering these buyers were making an important decision about their future during a chaotic time. Now the question is whether or not the trend will last as the pandemic's impact begins to recede.

If you're shopping for a house this year, there's likely a reason you've decided now's the right time for you to buy. Maybe it's because you no longer like the neighborhood you're in or you need more space because your family's grown since your last move. Whatever the reason, the list of things you want in your next home is mostly tied to the things you want and need right now. But, based on a new analysis of homeownership tenure from ATTOM Data Solutions, you might want to also think about your future needs. That's because, the length of time the average homeowner lives in a house has been growing in recent years. In fact, in the early 2000s, homeowners typically stayed in a house just under four-and-a-half years. These days, it's almost double that. At the end of last year, for example, the average homeowner had owned their home over eight years. And while it's fallen slightly this year, it's still climbing in some places – especially, the Midwest and South. In other words, the house you buy today might be your home for most of the next decade. Which means, you should probably give some thought to – not just what you need right now – but also what you might need over the next several years.

There are a lower-than-normal number of previously owned homes available in today's market, but that hasn't stopped home buyers. In fact, according to the National Association of Realtors, sales of existing homes between January and April are 20 percent higher than they were during the same period last year. That's despite the fact that April sales fell 2.7 percent from the month before. Lawrence Yun, NAR's chief economist, says demand is strong. “Despite the decline, housing demand is still strong compared to one year ago, evidenced by home sales from this January to April, which are up 20 percent compared to 2020,” Yun said. “The additional supply projected for the market should cool down the torrid pace of price appreciation later in the year.” More homeowners are expected to list their homes for sale as COVID vaccinations are administered and Americans feel more comfortable showing their homes. As that happens, home-price increases and buyer competition are expected to moderate.