Existing-home sales edge up in March
Total existing-home sales grew 1.1% in March to a seasonally adjusted annual rate of 5.6 million from 5.4 million in February, according to the National Association of Realtors (NAR).
Sales include including single-family homes, townhouses, condos, and co-ops.
Single-family home sales increased 0.6% to a seasonally adjusted annual rate of 4.99 million in March from 4.96 million in February but are 1.0 percent below the 5.04 million sales pace a year ago. The median existing single-family home price was $252,100 in March, up 5.9% from March 2017.
Existing condominium and co-op sales increased 5.2% to a seasonally adjusted annual rate of 610,000 units in March but are 3.2% below a year ago. The median existing condo price was $236,100 in March, which is 4.8% above a year ago.
By region, March existing-home sales in the Northeast jumped 6.3% of an annual rate of 680,000 but are still 9.3% below a year ago. The median price in the Northeast was $270,600, which is 3.3% above March 2017.
In the Midwest, existing-home sales increased 5.7% to an annual rate of 1.29 million in March but are still 1.5% below a year ago. The median price in the Midwest was $192,200, up 5.1% from a year ago.
Existing-home sales in the South decreased 0.4% to an annual rate of 2.40 million in March but are 0.4% above a year ago. The median price in the South was $222,400, up 5.7% from a year ago.
Existing-home sales in the West declined 3.1% to an annual rate of 1.23 million in March but are 0.8% above a year ago. The median price in the West was $377,100, up 7.9% from March 2017.
"Robust gains last month in the Northeast and Midwest – a reversal from the weather-impacted declines seen in February – helped overall sales activity rise to its strongest pace since last November at 5.72 million," said Lawrence Yun, NAR chief economist.
But Yun noted that sales are lagging year-ago-levels due to low supply and rising prices, which are turning off would-be buyers.
The median existing-home price for all housing types jumped 5.8% in March to $250,400. The increase marks the 73rd straight month of year-over-year gains.
"Although the strong job market and recent tax cuts are boosting the incomes of many households, speedy price growth is squeezing overall affordability in several markets – especially those out West," said Yun.
Total housing inventory at the end of March climbed 5.7% to 1.67 million existing homes available for sale but is 7.2% lower than last year’s level of 1.8 million. Supply has also fallen year-over-year for 34 consecutive months. Unsold inventory is at a 3.6-month supply at the current sales pace.
Properties have typically stayed on the market for 30 days in March, which is down from 37 days in February and 34 days a year ago. About 50% of homes sold in March were on the market for less than a month.
First-time buyers accounted for 30% of sales in March, which is up from 29% last month but down from 32% a year ago.
"First-time buyers continue to make up an underperforming share of the market because there are simply not enough homes for sale in their price range," said NAR President Elizabeth Mendenhall, a sixth-generation Realtor from Columbia, Mo. And CEO of RE/MAX Boone Realty. "Supply conditions improve in higher up price brackets, which means those trading up should see considerable interest in their home, as well as more listings to choose from during their own search."
Sales include including single-family homes, townhouses, condos, and co-ops.
Single-family home sales increased 0.6% to a seasonally adjusted annual rate of 4.99 million in March from 4.96 million in February but are 1.0 percent below the 5.04 million sales pace a year ago. The median existing single-family home price was $252,100 in March, up 5.9% from March 2017.
Existing condominium and co-op sales increased 5.2% to a seasonally adjusted annual rate of 610,000 units in March but are 3.2% below a year ago. The median existing condo price was $236,100 in March, which is 4.8% above a year ago.
By region, March existing-home sales in the Northeast jumped 6.3% of an annual rate of 680,000 but are still 9.3% below a year ago. The median price in the Northeast was $270,600, which is 3.3% above March 2017.
In the Midwest, existing-home sales increased 5.7% to an annual rate of 1.29 million in March but are still 1.5% below a year ago. The median price in the Midwest was $192,200, up 5.1% from a year ago.
Existing-home sales in the South decreased 0.4% to an annual rate of 2.40 million in March but are 0.4% above a year ago. The median price in the South was $222,400, up 5.7% from a year ago.
Existing-home sales in the West declined 3.1% to an annual rate of 1.23 million in March but are 0.8% above a year ago. The median price in the West was $377,100, up 7.9% from March 2017.
"Robust gains last month in the Northeast and Midwest – a reversal from the weather-impacted declines seen in February – helped overall sales activity rise to its strongest pace since last November at 5.72 million," said Lawrence Yun, NAR chief economist.
But Yun noted that sales are lagging year-ago-levels due to low supply and rising prices, which are turning off would-be buyers.
The median existing-home price for all housing types jumped 5.8% in March to $250,400. The increase marks the 73rd straight month of year-over-year gains.
"Although the strong job market and recent tax cuts are boosting the incomes of many households, speedy price growth is squeezing overall affordability in several markets – especially those out West," said Yun.
Total housing inventory at the end of March climbed 5.7% to 1.67 million existing homes available for sale but is 7.2% lower than last year’s level of 1.8 million. Supply has also fallen year-over-year for 34 consecutive months. Unsold inventory is at a 3.6-month supply at the current sales pace.
Properties have typically stayed on the market for 30 days in March, which is down from 37 days in February and 34 days a year ago. About 50% of homes sold in March were on the market for less than a month.
First-time buyers accounted for 30% of sales in March, which is up from 29% last month but down from 32% a year ago.
"First-time buyers continue to make up an underperforming share of the market because there are simply not enough homes for sale in their price range," said NAR President Elizabeth Mendenhall, a sixth-generation Realtor from Columbia, Mo. And CEO of RE/MAX Boone Realty. "Supply conditions improve in higher up price brackets, which means those trading up should see considerable interest in their home, as well as more listings to choose from during their own search."