Fewer people bought homes this March than the month before and during March 2023, a new report from the National Association of Realtors (NAR) reveals.
Total existing-home sales receded 4.3% from February to a seasonally adjusted annual rate of 4.19 million in March. Year-over-year, sales waned by 3.7% from 4.35 million in March 2023.
The one region that did see sales increase month over month was New England. Home 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.
Analysts chalk up the lack of purchase transactions to perpetually lofty mortgage rates.
“Though rebounding from cyclical lows, home sales are stuck because interest rates have not made any major moves,” NAR Chief Economist Lawrence Yun pointed out. “There are nearly six million more jobs now compared to pre-COVID highs, which suggests more aspiring home buyers exist in the market.”
It's not for lack of homes on the market. Total housing inventory at the end of March was 1.11 million units, up 4.7% from February and 14.4% from one year ago. 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 said. “Frankly, it’s a great time to list with ongoing multiple offers on mid-priced properties and, overall, home prices continuing to rise.”
In this sellers’ market, the median existing home price in March was $393,500, an increase of 4.8% from 2023 ($375,300). All four U.S. regions registered price gains.
Buyers are picking properties at a faster pace than they were the month prior. Homes remained on the market for an average of 33 days in March, beating February's 38 days but falling behind March 2023's speedy 29 days.
First-time buyers were responsible for 32% of sales in March, up from 26% in February and 28% in March 2023. 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 represented 2% of sales in March, virtually unchanged from last month and the prior year.
