According to the National Association of Realtors, quarterly annualized home sales in March were 6.01 million units, up 12.3% compared to the same month last year, but down 3.7% compared to February, which was the second consecutive month of decline and a seven-month low, with sales data also below market expectations.
By region, home sales in the four major regions declined month-over-month, with March home sales in the West down 8.0%, while declines in the Northeast, Midwest and South ranged from 1.3% to 2.9%.
One of the reasons for the decline in home sales in March is the tight supply in the market. According to statistics, the supply of homes for sale at the end of March was 1.07 million units, roughly the same level as last month, and down 28.2% from last year. In addition, the pace of home sales accelerated relative to last month, with an average speed of only 18 days from listing to sale, while 83% of homes sold in March were listed on the market for less than a month.
Another result of the tight supply is the rise in home sales prices. According to statistics, the median price of a home reached a new record high of $329,100 in March, up 17.2 percent year-over-year, the highest year-over-year increase ever recorded.
Lawrence Yun, the association’s chief economist, said in a media interview
We know that home prices have been rising and mortgage rates have been moving higher, which makes it more challenging to afford housing, but I would say the weak sales are not because demand has disappeared. The market demand is still strong, it’s just the severe lack of supply that is holding back sales.
Recent Comments