KhunkornStudio / Adobestock
Across the country, existing-home sales fell in March. According to the National Association of Realtors (NAR), declines were recorded in the Midwest, South, and West, but sales inched higher in the Northeast for the first time in four months. Sales were down year over year, however, in all sales regions. While home sales have recently shown signs of rebounding, overall sales were stagnant due to high interest rates. Yet, according to Lawrence Yun, chief economist for NAR, there might soon be a turnaround: "There are nearly six million more jobs now compared to pre-COVID highs, which suggests more aspiring homebuyers exist in the market."
Improving Inventory
By the end of March, there were 1.11 million available units for sale, up 4.7% from a month ago and a staggering 14.4% from a year ago. At the current sales pace, this inventory level would supply the market for 3.2 months, up from a 2.9-month supply a month ago and a 2.7-month supply in March 2023. While the increase in inventory is a welcome sign, Yun believes that sellers still have an advantage. "Frankly, it's a great time to list with ongoing multiple offers on midpriced properties and, overall, home prices continuing to rise." All four sales regions posted price gains, with median existing-home prices climbing 4.8% year over year. The median price of $393,500 was the highest price ever recorded in March, marking the ninth month in a row of year-over-year price gains.
Buyer Patterns
First-time buyers represented 32% of the buying public in March, up from 26% a month ago and 28% from a year ago. All-cash sales, meanwhile, accounted for 28% of all sales, a decrease from February's 33% but up from 27% recorded in March 2023. Individual investors or second-home buyers, two groups who prefer cash transactions, were responsible for 15% of all purchases in March, down from 21% a month ago and 17% a year ago. According to the REALTORS Confidence Index, published monthly, the average property remained available for 33 days in March, down from 38 days from February but up from 29 days from March 2023.
Regional Breakdown
Northeast: Existing-home sales annual rate of 500,000; an increase of 4.2% from February 2024 but a decrease of 3.8% from March 2023. The median sales price of $434,600 represented a 9.9% increase from March 2023.
Midwest: Existing-home sales annual rate of 1.01 million; a decrease of 1.9% from February 2024 and 1% from March 2023. The median sales price of $292,400 represented a 7.5% increase from March 2023.
South: Existing-home sales annual rate of 1.9 million; a decrease of 5.9% from February 2024 and 5% from March 2023. The median sales price of $359,100 represented a 3.4% increase from March 2023.
West: Existing-home sales annual rate of 780,000; a decrease of 8.2% from February 2024 and 3.7% from March 2023. The median sales price of $603,000 represented a 6.7% increase from March 2023.
