After hitting their highest level in a year in February, Existing Home Sales fell 4.3% in March to a 4.19-million-unit annualized pace, per the National Association of REALTORS® (NAR). This report measures closings on existing homes in March and likely reflects people shopping for homes in January and also in February when rates began to tick higher.
What’s the bottom line? While the pace of sales declined in March, it remains at the second highest level since last May, with NAR’s Chief Economist, Lawrence Yun, confirming that sales have rebounded from cyclical lows.
In addition, some of the internals within the report showed signs of strength. Homes remained on the market for a shorter period (an average of 33 days in March down from 38 days in February), while a greater number of homes sold above list price (29% in March versus 20% in February). This signals demand and competition remains ahead of the spring buying season.
Plus, there was some good news on the inventory front, as there were 1.11 million homes available for sale at the end of March, up 4.7% from February and 14.4% from a year earlier. While this remains below healthy levels, rising inventory is certainly a step in the right direction to help improve the persistent tight housing supply we’ve seen across the country. Yun added that “more inventory is always welcomed in the current environment.”