Existing-home sales slide in March
Existing-home sales fell 4.9% in March to a seasonally adjusted rate of 5.21 million units, the National Association of Realtors reported.
Total existing home sales include completed transactions of single-family homes, townhouses, condos and co-ops. Sales are down 5.4% from a year ago and a rate of 5.51 million in March 2018.
Single-family home sales were at a seasonally adjusted annual rate of 4.67 million in March, down from 4.91 million in February and down 4.7% from 4.90 million a year ago. The median existing single-family home price was $261,100 in March, up 3.8% from March 2018.
Existing condominium and co-op sales, at a seasonally adjusted annual rate of 540,000 units in March, are down 5.3% from last month and down 11.5% from a year ago. The median existing condo price was $244,400 in March, which is up 3.6% from a year ago.
“It is not surprising to see a retreat after a powerful surge in sales in the prior month. Still, current sales activity is underperforming in relation to the strength in the jobs markets. The impact of lower mortgage rates has not yet been fully realized,” said Lawrence Yun, NAR chief economist.
Regionally, March existing-home sales numbers in the Northeast decreased 2.9% to an annual rate of 670,000, 1.5% below a year ago. The median price in the Northeast was $277,500, which is up 2.5% from March 2018.
In the Midwest, existing-home sales declined 7.9% from last month to an annual rate of 1.17 million, 8.6% below March 2018 levels. The median price in the Midwest was $200,500, which is up 4.6% from last year.
Existing-home sales in the South dropped 3.4% to an annual rate of 2.28 million in March, down 2.1% from last year. The median price in the South was $227,400, up 2.4% from a year ago.
Existing-home sales in the West fell 6% to an annual rate of 1.09 million in March, 10.7% below a year ago. The median price in the West was $389,300, up 3.1% from March 2018.
The median existing-home price for all housing types in March was $259,400, up 3.8% from March 2018 ($249,800). March’s price increase marks the 85th straight month of year-over-year gains.
Total housing inventory at the end of March increased to 1.68 million, up from 1.63 million existing homes available for sale in February and a 2.4% increase from 1.64 million a year ago. Unsold inventory is at a 3.9-month supply at the current sales pace, up from 3.6 months in February and up from 3.6 months in March 2018.
The increases are good news for potential home buyers.
“Further increases in inventory are highly desirable to keep home prices in check,” Yun said. “The sustained steady gains in home sales can occur when home price appreciation grows at roughly the same pace as wage growth.”
Yun also said tax policy changes will likely add further complications to the housing sector.
“The lower-end market is hot while the upper-end market is not. The expensive home market will experience challenges due to the curtailment of tax deductions of mortgage interest payments and property taxes.”
The hottest metro areas in March, according to the NAR, were Columbus, Ohio; Boston-Cambridge-Newton, Mass.; Midland, Texas; Sacramento--Roseville--Arden-Arcade, Calif.; and Stockton-Lodi, Calif.
First-time buyers were responsible for 33% of sales in March, up from last month and a year ago (32% and 30%).
Total existing home sales include completed transactions of single-family homes, townhouses, condos and co-ops. Sales are down 5.4% from a year ago and a rate of 5.51 million in March 2018.
Single-family home sales were at a seasonally adjusted annual rate of 4.67 million in March, down from 4.91 million in February and down 4.7% from 4.90 million a year ago. The median existing single-family home price was $261,100 in March, up 3.8% from March 2018.
Existing condominium and co-op sales, at a seasonally adjusted annual rate of 540,000 units in March, are down 5.3% from last month and down 11.5% from a year ago. The median existing condo price was $244,400 in March, which is up 3.6% from a year ago.
“It is not surprising to see a retreat after a powerful surge in sales in the prior month. Still, current sales activity is underperforming in relation to the strength in the jobs markets. The impact of lower mortgage rates has not yet been fully realized,” said Lawrence Yun, NAR chief economist.
Regionally, March existing-home sales numbers in the Northeast decreased 2.9% to an annual rate of 670,000, 1.5% below a year ago. The median price in the Northeast was $277,500, which is up 2.5% from March 2018.
In the Midwest, existing-home sales declined 7.9% from last month to an annual rate of 1.17 million, 8.6% below March 2018 levels. The median price in the Midwest was $200,500, which is up 4.6% from last year.
Existing-home sales in the South dropped 3.4% to an annual rate of 2.28 million in March, down 2.1% from last year. The median price in the South was $227,400, up 2.4% from a year ago.
Existing-home sales in the West fell 6% to an annual rate of 1.09 million in March, 10.7% below a year ago. The median price in the West was $389,300, up 3.1% from March 2018.
The median existing-home price for all housing types in March was $259,400, up 3.8% from March 2018 ($249,800). March’s price increase marks the 85th straight month of year-over-year gains.
Total housing inventory at the end of March increased to 1.68 million, up from 1.63 million existing homes available for sale in February and a 2.4% increase from 1.64 million a year ago. Unsold inventory is at a 3.9-month supply at the current sales pace, up from 3.6 months in February and up from 3.6 months in March 2018.
The increases are good news for potential home buyers.
“Further increases in inventory are highly desirable to keep home prices in check,” Yun said. “The sustained steady gains in home sales can occur when home price appreciation grows at roughly the same pace as wage growth.”
Yun also said tax policy changes will likely add further complications to the housing sector.
“The lower-end market is hot while the upper-end market is not. The expensive home market will experience challenges due to the curtailment of tax deductions of mortgage interest payments and property taxes.”
The hottest metro areas in March, according to the NAR, were Columbus, Ohio; Boston-Cambridge-Newton, Mass.; Midland, Texas; Sacramento--Roseville--Arden-Arcade, Calif.; and Stockton-Lodi, Calif.
First-time buyers were responsible for 33% of sales in March, up from last month and a year ago (32% and 30%).