Despite a rise in existing home sales last month, the total remains subdued year-over-year
Despite a rise in existing home sales last month, the total remains subdued year-over-year.
Figures from the National Association of Realtors shows that there was an increase of 1.1% in March, the second consecutive increase; but with a seasonally adjusted annual rate of 5.60 million sales (up from 5.54m in February) existing sales were still 1.2% below those of March 2017.
The impact of low inventory continues to weigh on sales potential across nationwide markets, with rising prices slashing affordable choices.
"Robust gains last month in the Northeast and Midwest – a reversal from the weather-impacted declines seen in February – helped overall sales activity rise to its strongest pace since last November at 5.72 million," said NAR chief economist Lawrence Yun.
Total inventory did increase 5.7% to the end of March, meaning 1.67 million existing homes were available for sale. But the total is 7.2% below that of a year earlier, with the months of supply slipping from 3.8 in March 2017 to 3.6 last month.
"Although the strong job market and recent tax cuts are boosting the incomes of many households, speedy price growth is squeezing overall affordability in several markets – especially those out West," said Yun.
