Existing-Home Sales Drop In March As High Rates Stun Homebuyers

GettyImages 1084659318 1024x683

GettyImages 1084659318 1024x683

Existing-home sales dropped by 4.3 percent between February and March, reaching a seasonally adjusted annual rate of 4.19 million, according to data released by the National Association of Realtors. Despite being close to the peak of the Spring homebuying season, home sales decreased significantly in March due to the impact of high interest rates.

The median existing home sale price rose by 4.8 percent from March 2023 to $393,500, marking the ninth consecutive month of year-over-year price gains and the highest price ever for the month of March. NAR’s Chief Economist, Lawrence Yun, noted that the stagnation in home sales is due to interest rates remaining relatively stable. Mortgage rates for a 30-year mortgage averaged 6.88 percent in April, up from 6.82 percent the previous week and 6.27 percent a year ago.

Despite the slowdown in sales, prices continued to rise across all regions of the country, with the Northeast seeing a 9.9 percent increase annually. Inventory of unsold existing homes also increased by 4.7 percent from the previous month.

Yun emphasized the importance of more inventory in the current real estate market, stating that it is a favorable time to list properties with ongoing multiple offers and rising home prices. Although existing-home sales declined in all regions except the Northeast in March, Yun remains optimistic about the market’s potential for growth.

Existing-home sales dropped by 4.3 percent in March, reaching a seasonally adjusted annual rate of 4.19 million, according to data from the National Association of Realtors. This decline occurred despite the approaching Spring homebuying season, indicating the impact of high interest rates on the housing market. The median sales price for existing homes rose by 4.8 percent to $393,500, setting a new record for March. Chief Economist Lawrence Yun noted that the stagnant home sales can be attributed to interest rates remaining steady. The inventory of unsold homes grew by 4.7 percent to 1.11 million, providing more options for buyers. Prices increased across all regions of the country, with the Northeast experiencing the highest annual rise at 9.9 percent. While sales fell in all regions except the Northeast, February had seen a significant increase in existing-home sales.

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