USA’s existing-home prices fell about 1 percent in March month. It is the largest drop in a decade.
The existing-home sales in the USA fell 2.4 percent in March month. The buyers contended with high mortgage rates and a lack of new listings.
As per the National Association of Realtors, existing-home sales fell to a rate of 4.44 million in March. This is as per if sales took place at the same rate each month as in March. However, the numbers are adjusted seasonally.
The drop in sales reverses a jump in February month. This was when home sales went up to a pace of 4.55 million. The drop in sales was bigger than it was anticipated. Economists expected existing-home sales to be a total of 4.48 million in March. Compared with March 2022, home sales went down 22 percent.
The median price for existing homes fell by 0.9 percent from last March, dropping to $ 375,700 this year. The drop is the biggest since January 2012. In January 2012, home prices fell 2 percent, year over year. It is also the 2nd month, at a stretch, that home prices have fallen.
The number of homes on the market increased by 1 percent in March from the previous month to 980,000 units. If it is expressed according to the months-supply metric, then it can be said that there was a 2.6-month supply of homes for sale in March. This is the same as the last month. Before Covid-19, a 4 or 5-month supply was normal.
On average, homes stayed on the market for 29 days in March. It was down from 34 days in February. Sales of existing homes fell the most in the Midwest. The Northeast, however, was the only region that saw home sales stay flat.
All cash transactions made up 27 percent of all sales. About 28 percent of homes were sold to 1st-time home buyers. Here, the share of individual investors or 2nd-home buyers was 17 percent.
MarketWatch commented that buyers are watching mortgage rates. With fewer homes on the market, they are cautious and are pulling back. This is mainly because the market is not going their way.
Rates went up in the latest week. This added hundreds of dollars in extra costs for potential borrowers. Also, the mortgage demand is down. The drop may signal more weakness in home sales.
Would-be home buyers are contending with fewer new listings, but many still turn to new homes.
The chief economist at the National Association of Realtors, Lawrence Yun, said it is a unique housing market. There are drops in home prices and sales. But, despite that, multiple offers are back. Also, Yun said that this is especially for entry-level homes. However, new listings are down 17 percent from the last year. As a result, it is unclear if the market is good or bad, he said.