Existing home sales tanked in March, according to data from the National Association of Realtors (NAR).
Last month, total existing home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – declined by 4.3% from February to a seasonally adjusted annual rate of 4.19 million in March. On a year-over-year basis, sales were down 3.7% from 4.35 million in March 2023.
The drop in sales came as inventory opportunities expanded. The total housing inventory registered at the end of March was 1.11 million units, up 4.7% from February and up 14.4% from 970,000 units one year ago. Unsold inventory was at a 3.2-month supply at the current sales pace, up from 2.9 months in February and 2.7 months in March 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. 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.”
The median existing-home price for all housing types in March was $393,500, an increase of 4.8% from the previous year’s $375,300.
First-time buyers accounted for 32% of sales in March, up from 26% in February and 28% in March 2023. All-cash sales accounted for 28% of transactions in March, down from 33% in February but up from 27% one year ago. Distressed sales represented 2% of sales in March, virtually unchanged from last month and the prior year.
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