March US existing home sales from the National Association of Realtors rose 6.01m vs 6.11m expected. Sales -3.7% m/m vs -1.8% expected (-6.6% prior) from an upwardly revised 6.24 million (from 6.22 million) in February. Notably pressure is coming from the supply of existing homes for sale remains near all-time low levels. This is creating affordability pressures for prospective buyers. /p>
March US existing home sales from the National Association of Realtors rose 6.01m vs 6.11m expected. Sales -3.7% m/m vs -1.8% expected (-6.6% prior) from an upwardly revised 6.24 million (from 6.22 million) in February. Notably pressure is coming from the supply of existing homes for sale remains near all-time low levels. This is creating affordability pressures for prospective buyers.
Mortgage rates have risen from record low levels as the economy reopens from coronavirus-induced restrictions.
March 2021 US Existing Home Sales from the National Association of Realtors
After months of gains amid record-low interest rates and as people move away from the big cities as they have more flexible work arrangements due to the coronavirus pandemic we saw a sharp slow down with higher interest rates (though still very low historically.
- March US existing home sales rose 6.01m vs 6.11m expected. Prior was 6.22m (revised to 6.24)
- Sales -3.7% m/m vs -1.8% expected (-6.6% prior)
- Median home prices +17.2% y/y to $329,100
- Total sales in March were up 12.3% from a year ago.
Median House Prices Record High
- The pace of price increases well beyond the pace of income gains, which is going to create affordability pressures for prospective buyers along with rising mortgage rates.
- The median existing home price for all housing types represents the 109th consecutive month of year-over-year gains and the highest on record.
- The median price for single-family homes increased 18.4% yr/yr to $334,500, which was also a record high.
- Existing home sales across regions:
- Northeast (-1.3%); Midwest (-2.3%); South (-2.9%); and West (-8.0%).
- Median home prices by region year-over-year:
- Northeast (+21.4% to $364,800); Midwest (+13.5% yr/yr to $248,200); South (+15.6% to $283,900); and West (+16.8% to $493,300).
- First-time buyers accounted for 32% of sales in March, up from 31% in February and down from 34% in March 2020.
Existing Home Sales Month Long Supply
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.
- Supply to 2.1 months from 2.0 months
- The supply of existing homes for sale remains near all-time low levels.
- The pace of price increases well beyond the pace of income gains, which is going to create affordability pressures for prospective buyers along with rising mortgage rates.
- The inventory of homes for sale at the end of March was up 3.9% month over month at 1.07 million units, but down 28.2% from a year ago.
- Unsold inventory stood at a 2.1-month supply at the current sales pace versus 3.3 months in March 2020. This is well below the 6.0-months’ supply typically associated with a more balanced market.
- 83% of homes sold in March were on the market for less than a month, with properties typically remaining on the market for 18 days — a record low — versus 20 days in February and 29 days in the same month a year ago. The big question is after the lockdown eases and the economy reopens how much damage has been done with the massive unemployment and wealth erosion.
Source: NAHB
From The TradersCommunity News Desk