With Exception of One Region, Existing Home Sales Down in U.S. During March

04/24/2024 07:28 pm

WASHINGTON – With the exception of one region of the U.S., existing-home sales slipped in March, according to new data from the National Association of REALTORS.

Among the four major U.S. regions, sales slid in the Midwest, South and West, but rose in the Northeast for the first time since November 2023. Year-over-year, sales decreased in all regions, according to the NAR.

The NAR reported total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – receded 4.3% from February to a seasonally adjusted annual rate of 4.19 million in March. Year-over-year, sales waned 3.7% (down from 4.35 million in March 2023).

No Major Moves

"Though rebounding from cyclical lows, home sales are stuck because interest rates have not made any major moves," NAR Chief Economist Lawrence Yun said in a statement. "There are nearly six million more jobs now compared to pre-COVID highs, which suggests more aspiring home buyers exist in the market."

Total housing inventory registered at the end of March was 1.11 million units, up 4.7% from February and 14.4% from one year ago (970,000). Unsold inventory sits 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, NAR said.

"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 Data Points

According to the NAR data:

• The median existing-home price for all housing types in March was $393,500, an increase of 4.8% from the previous year ($375,300). All four U.S. regions registered price gains.
• According to the monthly REALTORS® Confidence Index, properties typically remained on the market for 33 days in March, down from 38 days in February but up from 29 days in March 2023.
• First-time buyers were responsible for 32% of sales in March, up from 26% in February and 28% in March 2023. NAR's 2023 Profile of Home Buyers and Sellers– released in November 2023 – found that the annual share of first-time buyers was 32%.
• All-cash sales accounted for 28% of transactions in March, down from 33% in February but up from 27% one year ago.
• Individual investors or second-home buyers, who make up many cash sales, purchased 15% of homes in March, down from 21% in February and 17% in March 2023.
• Distressed sales – foreclosures and short sales – represented 2% of sales in March, virtually unchanged from last month and the prior year.

Mortgage Rates

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.88% as of April 11. That's up from 6.82% the previous week and 6.27% one year ago.