Nar’s chief economist says increases in inventory are needed to keep home prices in check
March saw an increase in total housing inventory, according to the National Association of Realtors.
At the end of March, inventory rose to 1.68 million from 1.63 million existing homes available for sale in February and a 2.4% rise from 1.64 million a year ago.
The number of unsold houses is at a 3.9-month supply at the current sales pace, up from 3.6 months in February and in March a year ago.
"Further increases in inventory are highly desirable to keep home prices in check," said NAR Chief Economist Lawrence Yun. "The sustained steady gains in home sales can occur when home price appreciation grows at roughly the same pace as wage growth."
Properties stayed on the market for an average of 36 days in March, declining from 44 days in February but up from 30 days in March of 2018. Meanwhile, 47% of homes sold in March remained on the market for less than a month.
"We had been calling for additional inventory, so I am pleased to see that there has been a modest increase on that front," said NAR President John Smaby. "We're also seeing very favorable mortgage rates, so now would be a great time for those buyers who may have been waiting to make a purchase."
