Existing-home sales make a March comeback

Existing-home sales made a comeback in March thanks to momentum in the Northeast and Midwest, even though all four regions experienced growth.

According to the National Association of Realtors, existing-home sales jumped 5.1% to a seasonally adjusted annual rate of 5.33 million in March from a downwardly revised 5.07 million in February.

For single-family homes, that number was up 5.5% to a seasonally adjusted annual rate of 4.76 million in March, a 2.6% over last year.

"Closings came back in force last month as a greater number of buyers – mostly in the Northeast and Midwest – overcame depressed inventory levels and steady price growth to close on a home," said NAR chief economist Lawrence Yun. "Buyer demand remains sturdy in most areas this spring and the mid-priced market is doing quite well. However, sales are softer both at the very low and very high ends of the market because of supply limitations and affordability pressures."

The median existing-home price came in at $222,700, up 5.7% year-over-year. For single-family homes, the median price was $224,300 in March, up 5.8% from March 2015.

Total housing inventory also increased 5.9% to 1.98 million existing homes available for sale, but is still 1.5% lower than a year ago.

"The choppiness in sales activity so far this year is directly related to the unevenness in the rate of new listings coming onto the market to replace what is, for the most part, being sold rather quickly," added Yun. "Additionally, a segment of would-be buyers at the upper end of the market appear to have been spooked by January's stock market correction."

Regionally, the Northeast and the Midwest saw the most growth at 11.1% and 9.8%, respectively. Sales in the South increased 2.7%, and the West was up 1.8%.