US existing home sales from the National Association of Realtors declined 2.4% month-over-month in March to a seasonally adjusted annual rate of 4.44 million (consensus 4.50 million) versus a downwardly revised 4.55 million (from 4.58 million) in February. Sales were down 22.0% from the same period a year ago. Inventory of existing homes for sale remains extremely tight, due partially to the strength of the labor market (and ability to work remotely) and affordability with mortgage rates.
February was the first-time existing home sales had risen after falling twelve straight months prior to February, the longest stretch since 1999, and the lowest level since November of 2010.
Data for March 2023
Highlights
- Existing home sales declined 2.4% month-over-month in March to a seasonally adjusted annual rate of 4.44 million (consensus 4.50 million) versus a downwardly revised 4.55 million (from 4.58 million) in February.
- Sales were down 22.0% from the same period a year ago.
- The median existing home price for all housing types decreased 0.9% year-over-year to $375,700.
- The median price for single-family homes decreased 1.4% year-over-year to $380,000.
- The inventory of homes for sale at the end of March was 980,000 units, up 1.0% from February and up 5.4% from a year ago.
- Unsold inventory sits at a 2.6-month supply at the current sales pace, unchanged from February and up from 2.0 months in March 2022. It remains well below the 6.0-months’ supply typically associated with a more balanced market.
- First-time buyers accounted for 28% of sales in March, versus 27% in February and 30% a year ago.
- All-cash sales comprised 27% of transactions in March, down from 28% in February and 28% a year ago.
- 65% of homes sold in March were on the market for less than a month, versus 57% in February, with properties typically remaining on the market for 29 days, versus 34 days in February and 17 days a year ago.
The median existing home price for all housing types decreased 0.9% year-over-year to $375,700. The median price for single-family homes decreased 1.4% year-over-year to $380,000. Up until February January prices had risen for ends a streak of 131 consecutive months of year-over-year increases, the longest on record.
“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”, said NAR Chief Economist Lawrence Yun.”
- According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.27% as of April 13. That’s down from 6.28% from the previous week but up from 5.00% one year ago.
Regional Breakdown
- Existing home sales across regions: Northeast (unchanged); Midwest (-5.5%); South (-1.0%); and West (-3.5%).
- Median home prices by region year-over-year: Northeast (+1.0% to $395,400); Midwest (+1.7% to $273,400); South (+0.3% to $347,600); and West (-7.5% to $565,400).
Realtor.com®’s Market Trends Report in in November shows that the largest year-over-year median list price growth occurred in Milwaukee (+38.1%), Memphis (+26.9%) and Miami (+24.8%). Phoenix reported the highest increase in the share of homes that had prices reduced compared to last year (+28.4 percentage points), followed by Austin (+23.8 percentage points) and Denver (+21.0 percentage points).
The National Association of Realtors® is America’s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries.
Existing home sales account for 90% of US transactions and are calculated on a contract close basis. New home sales account for the remaining 10% and are based on contract signings.
Existing-home sales include single-family, townhomes, condominiums and co-ops, are based on transaction closings from Multiple Listing Services. Changes in sales trends outside of MLSs are not captured in the monthly series. NAR benchmarks home sales periodically using other sources to assess overall home sales trends, including sales not reported by MLSs.
Existing-home sales, based on closings, differ from the U.S. Census Bureau’s series on new single-family home sales, which are based on contracts or the acceptance of a deposit. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which account for more than 90% of total home sales, are based on a much larger data sample – about 40% of multiple listing service data each month – and typically are not subject to large prior-month revisions.
Source: NAHB
From The TradersCommunity News Desk