March Existing Home Sales Rise 5.1%

The National Association of Realtors (NAR) reports that the seasonally adjusted annual rate of existing home sales in March jumped 5.1% to a seasonally adjusted annual rate of 5.33 million from an downwardly revised total of 5.07 million in January.

The consensus estimate called for sales to reach 5.268 million according to a survey of economists polled by Bloomberg.

The NAR’s chief economist said:

Closings came back in force last month as a greater number of buyers – mostly in the Northeast and Midwest – overcame depressed inventory levels and steady price growth to close on a home. Buyer demand remains sturdy in most areas this spring and the mid-priced market is doing quite well. However, sales are softer both at the very low and very high ends of the market because of supply limitations and affordability pressures.

Housing inventory increased by 5.9% in March, to 1.98 million homes, which is equal to a supply of 4.5 months, an increase from 4.4 months in February.

According to the NAR, the national median existing home price for all housing types in March was $222,700, up 5.7% compared with March 2015, the 49th consecutive month of rising home prices. In January the national median price was $201,900.

The percentage of first-time buyers remained unchanged both year over year and month over month at 30% in March.

Sales of single-family homes rose 5.5% from the February total to a seasonally adjusted annual rate of 4.76 million, up 2.6% compared with March 2015. Sales of multi-family homes rose 1.8% in March at a seasonally adjusted annual rate of 570,000 units.

All homes were on the market for an average of 47 days in March, down from 59 days in February. Foreclosed and non-distressed homes were on the market for an average of 57 and 46 days, respectively, and short sales took a median of 120 days to sell.

The NAR also reported the following regional data:

March existing-home sales in the Northeast jumped 11.1% year-over-year to an annual rate of 700,000, and are now 7.7% above a year ago. The median price in the Northeast was $254,10000, which is 5.8% higher than in March 2015.

In the Midwest, existing-home sales increased 9.8% to an annual rate of 1.23 million in March and are now 0.8% higher than March 2015 sales. The median price in the Midwest was $174,800, up 7% from a year ago.

Existing-home sales in the South were up 2.7% in March to an annual rate of 2.25 million, and are now 2.3% above March 2015 sales. The median price in the South was $194,400, up 4.6% from a year ago.

Existing-home sales in the West rose by 1.8% to an annual rate of 1.15 million in March, and are now 2.5% lower than a year ago. The median price in the West was $320,800, which is 5.9% above the March 2015 median.