March existing-home sales slip in three out of four regions.
For the first time since the fall of 2023, the Northeast region posted a positive month of existing-home sales in March. Unfortunately, that was the only region that saw an upswing in sales numbers. Overall, existing-home sales slipped 4.3% in March, according to the National Association of REALTORS® (NAR). Sales were also down 3.7% from March of 2023.
"Though rebounding from cyclical lows, home sales are stuck because interest rates have not made any major moves," said NAR Chief Economist Lawrence Yun. "There are nearly six million more jobs now compared to pre-COVID highs, which suggests more aspiring home buyers exist in the market."
Mortgage rates in March were higher than they were a year ago, and have continued to climb in the weeks since. Work with a loan officer to help you navigate this rollercoaster rate environment. And keep in mind that things could be different where you live, so work with a local expert. Speaking of local, here is how existing-home sales broke out by region:
- Northeast: Up 4.2%, an annual rate of 500,000, down 3.8% from March 2023
- Midwest: Down 1.9% to an annual rate of 1,010,000, down 1.0% from March 2023
- South: Down 5.9% to an annual rate of 1,900,000, down 5.0% from March 2023
- West: Down 8.2% with an annual rate of 780,000, down 3.7% from March 2023
Housing inventory up again in March
For the third month in a row, the number of homes for sale, otherwise known as housing inventory, is up. There were 1.11 million units for sale in March, up 4.7% from February and 14.4% from March of 2023. That is a 3.2-month supply of homes at the current sales pace, which is great news for homebuyers, particularly first-time homebuyers.
"More inventory is always welcomed in the current environment," Yun added. "Frankly, it's a great time to list with ongoing multiple offers on mid-priced properties and, overall, home prices continuing to rise."
Of course, the housing market isn’t the same in every part of the country and some areas are seeing homes being sold more quickly than other. Find out which markets are moving fast and slow.
Home price trends
More homes for sale could also have a cooling effect on home prices, helping keep them from rising too high, too fast. The median existing-home price in March was $393,500, up 4.8% from the previous year ($375,300). All four regions saw prices go up. Here’s how this month’s data compares to the last 12 months of home price trends:
Month | Median existing-home price | Month-over-month | Year-over-year |
$375,700 | Up 3.5% | Down 0.9% | |
$388,800 | Up 3.5% | Down 1.7% | |
$396,100 | Up 1.9% | Down 3.1% | |
$410,200 | Up 3.6% | Down 0.9% | |
$406,700 | Down 0.9% | Up 1.9% | |
$407,100 | Up 0.1% | Up 3.9% | |
$394,300 | Down 3.1% | Up 2.8% | |
$391,800 | Down 0.6% | Up 3.4% | |
$387,600 | Down 1.1% | Up 4.0% | |
$382,600 | Down 1.3% | Up 4.4% | |
$379,100 | Down 0.9% | Up 5.1% | |
$384,500 | Up 1.4% | Up 5.7% | |
March | $393,500 | Up 2.3% | Up 4.8% |
Who’s doing the buying?
First-time homebuyers were responsible for 32% of sales in March, up from 26% in February. All-cash sales made up 28% of transactions in March, down from 33% the month before.
These facts suggest that it may be a good market for first-time homebuyers, and Same Day Mortgage can help you compete with deep-pocketed buyers who may purchase with cash.
Source: https://www.nar.realtor/newsroom/existing-home-sales-descended-4-3-in-march
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