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IPFS News Link • Housing

Existing Home Sales Decline Again, But the Big Bust Starts Next Month

• https://mishtalk.com, By Mish

The National Association of Realtors (NAR) reports Existing Home Sales Slip 2.7% in March

Key Highlights 

Existing-home sales fell for the second straight month in March to a seasonally adjusted annual rate of 5.77 million. Sales were down 2.7% from the prior month and 4.5% from a year ago.

With slower demand, the inventory of unsold existing homes increased to 950,000 as of the end of March. That would support 2.0 months at the monthly sales pace.

The median existing-home sales price rose to $375,300, up 15% from one year ago.

Total housing inventory at the end of March totaled 950,000 units, up 11.8% from February and down 9.5% from one year ago (1.05 million). 

Unsold inventory sits at a 2.0-month supply at the present sales pace, up from 1.7 months in February and down from 2.1 months in March 2021.

The median existing-home price for all housing types in March was $375,300, up 15.0% from March 2021 ($326,300), as prices rose in each region. This marks 121 consecutive months of year-over-year increases, the longest-running streak on record.

Individual investors or second-home buyers, who make up many cash sales, purchased 18% of homes in March, down from 19% in February but up from 15% in March 2021. 

All-cash sales accounted for 28% of transactions in March, up from both the 25% recorded in February and from 23% in March 2021.

Cash sales made up a larger fraction of transactions, climbing to the highest share since 2014.

Goldilocks NAR View

"The housing market is starting to feel the impact of sharply rising mortgage rates and higher inflation taking a hit on purchasing power," said Lawrence Yun, NAR's chief economist. "Still, homes are selling rapidly, and home price gains remain in the double-digits."


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