Existing Home Sales Down by Nearly 6%

Existing home sales sank by 5.9% from February to March to a seasonally adjusted annual rate of 4.02 million, according to data from the National Association of Realtors (NAR). Year-over-year, sales dropped by 2.4% from the 4.12 million transactions in March 2024.

On a month-over-month measurement, sales were lower in the four major US regions. Year-over-year, sales dropped in the Midwest and South, increased in the West and were unchanged in the Northeast.

The decline in sales was seesawed by the rise in available properties. Total housing inventory registered 1.33 million units at the end of March, up 8.1% from February and 19.8% from one year earlier (1.11 million). Unsold inventory was at a 4.0-month supply at the current sales pace, up from 3.5 months in February and 3.2 months in March 2024.

The median existing-home price for all housing types in March was $403,700, up 2.7% from the $392,900 price set one year ago. All four US regions registered price increases.

“Homebuying and selling remained sluggish in March due to the affordability challenges associated with high mortgage rates,” said NAR Chief Economist Lawrence Yun. “Residential housing mobility, currently at historical lows, signals the troublesome possibility of less economic mobility for society.”

Yun added, “In a stark contrast to the stock and bond markets, household wealth in residential real estate continues to reach new heights. With mortgage delinquencies at near-historical lows, the housing market is on solid footing. A small deceleration in home price gains, which was slightly below wage-growth increases in March, would be a welcome improvement for affordability. With real estate asset valuation at $52 trillion, according to the Federal Reserve Flow of Funds, each percentage point gain in home prices adds more than $500 billion to the household balance sheet.”