Existing home sales fell by 3.7% month over month in March, marking two consecutive months of declines, according to the National Association of Realtors.
Total existing home sales, which include single-family homes, townhomes, condominiums, and co-ops, fell to a seasonally adjusted annual rate of 6 million in March. On a year-over-year basis, overall sales rose 12.3%, up from 5.35 million in March 2020.
The median existing home price was $329,100 for all housing types, up 17.2% from one year ago ($280,000). This marks 109 straight months of year-over-year price gains.
“Consumers are facing much higher home prices, rising mortgage rates, and falling affordability; however, buyers are still actively in the market,” says Lawrence Yun, NAR’s chief economist. “The sales for March would have been measurably higher had there been more inventory. Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising.”
Yun adds that mortgage rates remain favorable, and overall the economic outlook is promising. “At least half of the adult population has received a COVID-19 vaccination, according to reports, and recent housing starts and job creation data show encouraging dynamics of more supply and strong demand in the housing sector.”
Total housing inventory amounted to 1.07 million units at the end of March, up 3.9% from February and down 28.2% from one year ago. Unsold inventory sits at a 2.1-month supply, down from 3.3 months one year ago. Properties typically remained on the market for 18 days in March, down from 20 days in February and 29 days in March 2020.
“Without an increase in supply, the society wealth division will widen with homeowners enjoying sizable equity gains while renters will struggle to become homeowners,” Yun says.
Realtor.com’s Market Hotness Index, which measures time-on-the-market data and listing views per property, lists Manchester and Concord, New Hampshire; Vallejo, California; Burlington, North Carolina; and Springfield, Ohio, as the hottest metro areas in March.
Single-family home sales alone decreased to a seasonally adjusted annual rate of 5.3 million in March, down 4.3% from 5.54 million in February and up 10.4% from one year ago.
Existing home sales in the Northeast fell 1.3% month over month but rose 16.9% from one year ago. At the same time, existing sales fell 2.3% in the Midwest, up 0.8% from one year ago. Existing sales in the South fell 2.9% month over month but rose 15.9% from the same time one year ago, and sales in the West fell 8% month over month and rose 15.5% from one year ago.
