U.S. March Existing-Home Sales Drop on Tight Supply
By Nicole Friedman
Sales of previously owned homes declined in March for the second
straight month, as a shortage of homes for sale limited
Existing-home sales dropped 3.7% in March from February to a
seasonally adjusted annual rate of 6.01 million, the National
Association of Realtors said Thursday. March sales marked a 12.3%
increase from a year earlier.
Economists surveyed by The Wall Street Journal expected a 1.8%
monthly decline in sales of previously owned homes, which make up
most of the housing market.
The housing market boomed in 2020, with home sales hitting the
highest level in 14 years, due to low interest rates and new demand
for housing spurred by the Covid-19 pandemic. But the pandemic also
exacerbated a lack of inventory in the market. Buyers are competing
fiercely for a limited number of homes, pushing prices sharply
"The softening sales activity is not due to demand going away.
Demand remains strong," said Lawrence Yun, NAR's chief economist.
"It is the lack of inventory that is hindering the sales
The median existing-home price rose 17.2% in March from a year
earlier to $329,100, a record high, NAR said. The annual price
appreciation was the strongest in data going back to 1999.
The typical home that sold in March spent 18 days on the market,
the fastest pace on record and down from 20 days in February, NAR
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(END) Dow Jones Newswires
April 22, 2021 10:27 ET (14:27 GMT)
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