NAR data shows another dip in existing home sales: Massachusetts Homebuyers Homeownership

 Existing home sales fell for the second month in a row in March as rising prices and interest rates sapped purchasing power, the National Association of REALTORS® said.  At the same time, total housing inventory jumped 11.8 percent on a month over month basis to nine hundred and fifty thousand units. Total existing home sales, which are completed transactions, including single family homes, townhomes, condominiums and co-ops, slid 2.7 percent from February to a seasonally adjusted annual rate of 5.77 million in March. Year over year, sales were down 4.5 percent from 6.04 million transactions in March 2021.  

   The median existing-home price for all housing types in March was three hundred and seventy five thousand three hundred dollars, up fifteen percent from a year before, as median prices rose in each region.  March’s unsold inventory represented a two month supply at the current sales pace, up from 1.7 months in February and down from 2.1 months a year ago. “The housing market is starting to feel the impact of sharply rising mortgage rates and higher inflation taking a hit on purchasing power,” NAR chief economist Lawrence Yun said in a press release. “Still, homes are selling rapidly, and home-price gains remain in the double-digits.”  Despite the speedy pace of sales, Yun expects transactions to fall ten percent this year, while home prices will rise a relatively modest five percent.

 “Home prices have consistently moved upward as supply remains tight,” Yun said. “However, sellers should not expect the easy profit gains and should look for multiple offers to fade as demand continues to subside.” Properties typically remained on the market for seventeen days in March, down from eighteen days in February and eighteen days in March 2021. Eighty seven percent of homes sold in March were on the market for less than a month. By property type, single family home sales slid to a seasonally adjusted annual rate of 5.13 million, down 2.7 percent from 5.27 million in February and down 3.8 percent from a year earlier. The median existing single family home price was three hundred and eight two thousand dollars, up 15.2 percent on a year over year basis.     

 Existing condominium and co-op sales came in at a seasonally adjusted annual rate of six hundred forty thousand units in March, down three percent from six hundred sixty six thousand in February and down 9.9 percent compared to March 2021. The median existing condo price rose 11.9 percent year over year to three hundred two hundred and twenty two dollars. In March, first time buyers were responsible for thirty percent of sales, up from twenty nine percent in February and down from thirty two percent in March 2021, while individual investors or second home buyers, who make up many cash sales, purchased eighteen percent of homes, down from nineteen percent in February and up from fifteen percent in March 2021. “It appears first time home buyers are still looking to lock in at current mortgage rates before they inevitably increase,” Yun said, and noted an uptick in the share of buyers paying in cash. “With rising mortgage rates, cash sales made up a larger fraction of transactions, climbing to the highest share since 2014.”  

The post NAR data shows another dip in existing-home sales  appeared first on Boston Agent Magazine.

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