M
arket momentum is building as spring's arrival brings a surge in home sales across the nation, states, and local markets. According to Lawrence Yun, Chief Economist of the National Association of Realtors, this uptick is a welcome respite from recent market fluctuations.

    Newly constructed homes are leading the charge, with sales rising 7% in March compared to the previous month and 6% year-over-year. A robust inventory supply – currently at an 8-month level – is fueling this growth. Yun notes that homebuilders' shift towards smaller-sized homes is also attracting buyers, as evidenced by a median price of $403,600 for newly constructed homes, significantly lower than the $435,000 mark three years ago.

    While existing homeowner sales have struggled in recent years due to historically low inventory levels, Yun predicts an increase in available properties as life-changing events prompt some homeowners to re-enter the market. Mortgage applications to purchase homes are up 4.3% year-to-date, a promising sign despite the fact that application does not guarantee approval or entry into the market.

    In Pennsylvania, the real estate landscape is particularly vibrant. According to the latest report from the Pennsylvania Association of Realtors, home sales skyrocketed by 21% in March compared to February, with a total of 8,230 properties changing hands. The median home sales price also saw a 2% increase, rising to $285,000. Notably, available inventory grew nearly 10% month-over-month, reaching 32,761 listings.

    Bill Lublin, PAR president and Philadelphia-area broker, attributes this springtime surge to the traditional renewal of energy in the real estate market. "As the weather warms up and landscapes bloom, many home sellers tend to list their properties, showcasing them in the best possible light."