Dive Brief:
- Existing home sales rose 5.1% between February and March to a seasonally adjusted annual rate of 5.33 million, the National Association of Realtors reported Wednesday.
- All four U.S. regions saw sales rise last month. The share of first-time buyers remained unchanged between February and March, at 30%.
- The median existing-home price in March was $210,800 — 5.7% higher than the same time last year. March marked the 49th consecutive month of year-over-year gains in existing-home prices.
Dive Insight:
March's existing home sale results were higher than expected, as economists had predicted they would rise only 3.9% in March to an annualized rate of 5.28 million, according to Business Insider. The rise follows a 7.1% dip in February.
NAR Chief Economist Lawrence Yun attributed the overall "choppiness in sales activity so far this year" to ongoing concerns of a lack of available inventory and rising prices. "Buyer demand remains sturdy in most areas this spring and the mid-priced market is doing quite well," he said in a release. "However, sales are softer both at the very low and very high ends of the market because of supply limitations and affordability pressures."
The NAR continues to warn that — despite this month's increase in existing home sales — without an influx in new home construction, the housing market's recovery will struggle.
Housing reports this month have been largely disappointing for the residential industry. Builder confidence remained unchanged at 58, and housing starts dropped 8.8% in March to a 1.09 million annualized rate. Today's report will be followed by the new home sales on April 25 and pending home sales on April 27.
