Key Highlights
- Existing-home sales
retreated 4.3% in March to a seasonally adjusted annual rate of
4.19 million. Sales fell 3.7% from the previous year.
- The median
existing-home sales price rose 4.8% from March 2023 to $393,500 –
the ninth consecutive month of year-over-year price gains and the
highest price ever for the month of March.
- The inventory of
unsold existing homes grew 4.7% from one month ago to 1.11 million
at the end of March, or the equivalent of 3.2 months’ supply at the
current monthly sales pace.
Existing-home
sales slipped in March, according to the National Association of
Realtors®. Among the four major U.S. regions, sales slid in the
Midwest, South and West, but rose in the Northeast for the first
time since November 2023. Year-over-year, sales decreased in all
regions.Total existing-home sales[1] – completed
transactions that include single-family homes, townhomes,
condominiums and co-ops – receded 4.3% from February to a
seasonally adjusted annual rate of 4.19 million in March.
Year-over-year, sales waned 3.7% (down from 4.35 million in March
2023).“Though rebounding from cyclical lows, home sales are stuck
because interest rates have not made any major moves,” said NAR
Chief Economist Lawrence Yun. “There are nearly six million more
jobs now compared to pre-COVID highs, which suggests more aspiring
home buyers exist in the market.”Total housing inventory[2]
registered at the end of March was 1.11 million units, up 4.7% from
February and 14.4% from one year ago (970,000). Unsold inventory
sits at a 3.2-month supply at the current sales pace, up from 2.9
months in February and 2.7 months in March 2023.“More inventory is
always welcomed in the current environment,” Yun added. “Frankly,
it’s a great time to list with ongoing multiple offers on
mid-priced properties and, overall, home prices continuing to
rise.”The median existing-home price[3] for all housing types in
March was $393,500, an increase of 4.8% from the previous year
($375,300). All four U.S. regions registered price
gains.REALTORS® Confidence IndexAccording to the monthly
REALTORS® Confidence Index, properties typically remained on the
market for 33 days in March, down from 38 days in February but up
from 29 days in March 2023.First-time buyers were responsible for
32% of sales in March, up from 26% in February and 28% in March
2023. NAR’s 2023 Profile of Home Buyers and Sellers – released in
November 2023[4] – found that the annual share of first-time buyers
was 32%.All-cash sales accounted for 28% of transactions in March,
down from 33% in February but up from 27% one year ago.Individual
investors or second-home buyers, who make up many cash sales,
purchased 15% of homes in March, down from 21% in February and 17%
in March 2023.Distressed sales[5] – foreclosures and short sales –
represented 2% of sales in March, virtually unchanged from last
month and the prior year.Mortgage RatesAccording to Freddie
Mac, the 30-year fixed-rate mortgage averaged 6.88% as of April 11.
That’s up from 6.82% the previous week and 6.27% one year
ago.Single-family and Condo/Co-op SalesSingle-family home
sales declined to a seasonally adjusted annual rate of 3.8 million
in March, down 4.3% from 3.97 million in February and 2.8% from the
prior year. The median existing single-family home price was
$397,200 in March, up 4.7% from March 2023.At a seasonally adjusted
annual rate of 390,000 units in March, existing condominium and
co-op sales decreased 4.9% from last month and 11.4% from one year
ago (440,000 units). The median existing condo price was $357,400
in March, up 5.8% from the previous year ($337,900).Regional
Breakdown Existing-home sales in the Northeast climbed 4.2%
from February to an annual rate of 500,000 in March, ending a
four-month streak where sales in the Northeast registered 480,000
units. Compared to March 2023, home sales were down 3.8%. The
median price in the Northeast was $434,600, up 9.9% from one year
ago.In the Midwest, existing-home sales retracted 1.9% from one
month ago to an annual rate of 1.01 million in March, down 1.0%
from the prior year. The median price in the Midwest was $292,400,
up 7.5% from March 2023.Existing-home sales in the South faded 5.9%
from February to an annual rate of 1.9 million in March, down 5.0%
from one year before. The median price in the South was $359,100,
up 3.4% from last year.In the West, existing-home sales slumped
8.2% from a month ago to an annual rate of 780,000 in March, a
decline of 3.7% from the previous year. The median price in the
West was $603,000, up 6.7% from March 2023.About the National
Association of Realtors®The National Association of Realtors®
is America’s largest trade association, representing 1.5 million
members involved in all aspects of the residential and commercial
real estate industries. The term Realtor® is a registered
collective membership mark that identifies a real estate
professional who is a member of the National Association of
Realtors® and subscribes to its strict Code of Ethics.
# # #
For local information, please contact the local association of
Realtors® for data from local multiple listing services (MLS).
Local MLS data is the most accurate source of sales and price
information in specific areas, although there may be differences in
reporting methodology.NOTE: NAR’s Pending Home Sales Index
for March is scheduled for release on April 25, and Existing-Home
Sales for April will be released on May 22. Release times are 10
a.m. Eastern.
Information about NAR is available at
nar.realtor. This and other news releases are posted in
the newsroom at nar.realtor/newsroom.
Statistical data in this release, as well as other tables and
surveys, are posted in the “Research and Statistics” tab.
[1] Existing-home sales, which include single-family, townhomes,
condominiums and co-ops, are based on transaction closings from
Multiple Listing Services. Changes in sales trends outside of MLSs
are not captured in the monthly series. NAR benchmarks home sales
periodically using other sources to assess overall home sales
trends, including sales not reported by MLSs.Existing-home sales,
based on closings, differ from the U.S. Census Bureau’s series on
new single-family home sales, which are based on contracts or the
acceptance of a deposit. Because of these differences, it is not
uncommon for each series to move in different directions in the
same month. In addition, existing-home sales, which account for
more than 90% of total home sales, are based on a much larger data
sample – about 40% of multiple listing service data each month –
and typically are not subject to large prior-month
revisions.
The annual rate for a particular month represents what the total
number of actual sales for a year would be if the relative pace for
that month were maintained for 12 consecutive months. Seasonally
adjusted annual rates are used in reporting monthly data to factor
out seasonal variations in resale activity. For example, home sales
volume is normally higher in the summer than in the winter,
primarily because of differences in the weather and family buying
patterns. However, seasonal factors cannot compensate for abnormal
weather
patterns.
Single-family data collection began monthly in 1968, while condo
data collection began quarterly in 1981; the series were combined
in 1999 when monthly collection of condo data began. Prior to this
period, single-family homes accounted for more than nine out of 10
purchases. Historic comparisons for total home sales prior to 1999
are based on monthly single-family sales, combined with the
corresponding quarterly sales rate for condos.
[2] Total inventory and month’s supply data are available back
through 1999, while single-family inventory and month’s supply are
available back to 1982 (prior to 1999, single-family sales
accounted for more than 90% of transactions and condos were
measured only on a quarterly basis).
[3] The median price is where half sold for more and half sold
for less; medians are more typical of market conditions than
average prices, which are skewed higher by a relatively small share
of upper-end transactions. The only valid comparisons for median
prices are with the same period a year earlier due to seasonality
in buying patterns. Month-to-month comparisons do not compensate
for seasonal changes, especially for the timing of family buying
patterns. Changes in the composition of sales can distort median
price data. Year-ago median and mean prices sometimes are revised
in an automated process if additional data is received.The national
median condo/co-op price often is higher than the median
single-family home price because condos are concentrated in
higher-cost housing markets. However, in a given area,
single-family homes typically sell for more than condos as seen in
NAR’s quarterly metro area price reports.
[4] Survey results represent owner-occupants and differ from
separately reported monthly findings from NAR’s REALTORS®
Confidence Index, which include all types of buyers. The annual
study only represents primary residence purchases, and does not
include investor and vacation home buyers. Results include both new
and existing homes.
[5] Distressed sales (foreclosures and short sales), days on
market, first-time buyers, all-cash transactions and investors are
from a monthly survey for the NAR’s REALTORS® Confidence
Index, posted at nar.realtor.
Troy Green
National Association of Realtors®
tgreen@nar.realtor