March Existing Home Sales: A Step Back, But Still Moving Forward

• Existing home sales dropped 4.9% in March from February, to 5.21 million sales (SAAR), according to the National Association of Realtors. Sales were down 5.4% from a year ago.
• Inventory at the end of March was 1.68 million, up 3.1% from February and 2.4% from a year ago.
• The median (non-seasonally adjusted) price of existing homes sold in March was $259,400, up 3.8% from a year earlier.

Despite the step backward from February’s release, today’s report still paints an encouraging picture for the housing market. February’s exceptionally strong report – which showed sales increased 11.8 percent from January – may not have been a beacon of future sales. The housing market is still recovering from a dismal fall and winter, where home sales stalled amid climbing mortgage rates, poor stock market performance and a government shutdown. While today’s figures show a slight pullback from February, the overall trend still shows a market that is improving and prepared for more growth. What’s more, with mortgage rates remaining low, home purchase applications continue to rise, suggesting that this gradual recovery in home sales will continue as we head into spring.