Existing-home sales jumped 4.4% to a seasonally adjusted annual rate of 5.71 million in March from a downwardly revised 5.47 million in February, the National Association of Realtors reported Friday.
The March sales pace was 5.9% ahead of a year earlier and surpassed January as the strongest month since February 2007 (5.79 million).
“The early returns so far this spring buying season look very promising as a rising number of households dipped their toes into the market and were successfully able to close on a home last month,” said Lawrence Yun, NAR chief economist. “Although finding available properties to buy continues to be a strenuous task for many buyers, there was enough of a monthly increase in listings in March for sales to muster a strong gain. Sales will go up as long as inventory does.”
The median existing-home price2 for all housing types in March was $236,400, up 6.8% from March 2016 ($221,400). March’s price increase marks the 61st consecutive month of year-over-year gains.
Single-family home sales climbed 4.3% to a seasonally adjusted annual rate of 5.08 million in March from 4.87 million in February, and are now 6.1% above the 4.79 million pace a year ago. The median existing single-family home price was $237,800 in March, up 6.6% from March 2016.
Existing condominium and co-op sales increased 5.0% to a seasonally adjusted annual rate of 630,000 units in March, and are now 5.0% higher than a year ago. The median existing condo price was $224,700 in March, which is 8.0% above a year ago.
March existing-home sales in the Northeast surged 10.1% to an annual rate of 760,000, 4.1% above a year ago. The median price in the Northeast was $260,800, 2.8% above March 2016. In the Midwest, existing-home sales jumped 9.2% to an annual rate of 1.31 million in March, 3.1% above a year ago. The median price in the Midwest was $183,000, up 6.2% from a year ago. Existing-home sales in the South in March rose 3.4% to an annual rate of 2.42 million, 8.5% above March 2016. The median price in the South was $210,600, up 8.6% from a year ago. Existing-home sales in the West decreased 1.6% to an annual rate of 1.22 million in March, but are still 5.2% above a year ago. The median price in the West was $347,500, up 8.0% from March 2016.
Total housing inventory at the end of March increased 5.8% to 1.83 million existing homes available for sale, but is still 6.6% lower than a year ago (1.96 million) and has fallen year-over-year for 22 straight months. Unsold inventory is at a 3.8-month supply at the current sales pace (unchanged from February).
Properties typically stayed on the market for 34 days in March, which is down significantly from 45 days in February and 47 days a year ago. Short sales were on the market the longest at a median of 90 days in March, while foreclosures sold in 52 days and non-distressed homes took 32 days (shortest since NAR began tracking in May 2011). Forty-eight percent of homes sold in March were on the market for less than a month.
Inventory data from realtor.com® reveals that the metropolitan statistical areas where listings stayed on the market the shortest amount of time in March were San Jose-Sunnyvale-Santa Clara, Calif., 24 days; San Francisco-Oakland-Hayward, Calif., 25 days; Seattle-Tacoma-Bellevue, Wash., and Denver-Aurora-Lakewood, Colo., both at 28 days; and Vallejo-Fairfield, Calif., 31 days.
“Last month’s swift price gains and the remarkably short time a home was on the market are directly the result of the home building industry’s struggle to meet the dire need for more new homes,” said Yun. “A growing pool of all types of buyers is competing for the lackluster amount of existing homes on the market. Until we see significant and sustained multi-month increases in housing starts, prices will continue to far outpace incomes and put pressure on those trying to buy.”
First-time buyers accounted for 32% of sales in March, which is unchanged from February and up from 30% a year ago. NAR’s 2016 Profile of Home Buyers and Sellers – released in late 20164 – revealed that the annual share of first-time buyers was 35%.
All-cash sales were 23% of transactions in March, down from 27% in February and 25% a year ago. Individual investors, who account for many cash sales, purchased 15% of homes in March, down from 17% in February but up from 14% a year ago. 63%of investors paid in cash in March.
Distressed sales – foreclosures and short sales – were 6%of sales in March, down from 7% in February and 8% a year ago. 5% of March sales were foreclosures and 1% were short sales. Foreclosures sold for an average discount of 16% below market value in March (18% in February), while short sales were discounted 14% (17% in February).
