March existing home sales increased 1.1 percent from February to 5.6 million units at a seasonally adjusted annual rate (SAAR), according to the National Association of Realtors, the second consecutive month of unexpectedly strong sales after a string of weak reports.
Just in time for spring, inventory of existing homes for sale may finally be showing some green shoots after three years in the cold.
March existing home sales increased 1.1 percent from February to 5.6 million units at a seasonally adjusted annual rate (SAAR), according to the National Association of Realtors. It was the second consecutive month of unexpectedly strong sales after a string of weak reports, although sales still remain 1.2 percent below where they stood a year ago. After dipping sharply last fall and over the winter, existing home sales have now recovered to roughly the same range where they were in late 2016 and early 2017.
The number of existing homes on the market increased 0.4 percent from February, to 1.73 million units (SAAR). Inventory was down 7.4 percent over the past year, the 34 month in a row of annual declines. But the number of existing homes for sale has increased in each of the past three months compared to the month prior – the longest streak of monthly inventory increases since spring 2015. Still, the increase in inventory in March was driven by a combination of downward revisions to the previous month’s inventory and more condos/coops on the market rather than single-family homes– not quite the unambiguous gains the market needs right now. Inventory of single-family homes fell 0.2 percent in March from February, to 1.54 million units (SAAR), and is down 7.2 percent over the past year.
The median seasonally adjusted price of existing homes sold in March surged to a new all-time record, increasing by 0.6 percent from February to $257,100, and up 5.8 percent over the year. The median price of existing homes sold in March was 11.5 percent ($25,400) above the pre-crisis peak reported in October 2005.
