Existing home sales in March totaled 4.44mm, below the estimate of 4.5mm and down from 4.55mm in February. Home prices fell .9% y/o/y and that is the first decline since February 2012 as the housing market was trying to recover then. The NAR said prices are rising in the regions that are seeing job growth and housing is more affordable “however, the more expensive areas of the country are adjusting to lower prices.” Months’ supply, reflecting the still tight inventory, was 2.6 for a 2nd month. The first time buyer made up 28% of purchases vs 27% in February and 31% in January. Days on the market averaged 29 vs 34 in February, 33 in January and 26 in December. All cash buyers totaled 27% vs 28% in the month before and vs 29% in the month before that.
The NAR said “Home sales are trying to recover and are highly sensitive to changes in mortgage rates. Yet, at the same time, multiple offers on starter homes are quite common, implying more supply is needed to fully satisfy demand. It’s a unique housing market.” To say the least I’ll add.
Bottom line, thanks to affordability challenges and the lack of inventory where both are reducing the pace of transactions, the March figure of 4.44mm is almost 1mm below the 20 yr average of 5.32mm. The needed inventory gives opportunity to the builders but the builders also face the same affordability issues and why they are still using incentives and rate buy downs to move product.
Existing Home Sales
Home Price change y/o/y
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