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Did existing home sales rebound in March?

[Post Category: Industry News]

The housing market has been hit by so many opposing forces it might be getting whiplash.

On the one hand, demand is strong. Job and income growth have been healthy and many Millennials are itching to move out of their parents’ basements.

At the same time, the 3.8-month supply of homes on the market is well below the six months considered balanced, leaving shoppers who don’t act swiftly out of luck. That’s curbing total sales. The tight supplies are also pushing up prices, which can further temper purchases.

And 30-year mortgage rates, which are averaging 4.08%, have fallen in recent weeks but are still up from 3.47% in October.

In February, the skimpy home inventories curtailed sales, which fell 3.7%.

And while some buyers might be discouraged by rising prices and higher mortgage rates, those factors might nudge others to buy before costs rise further.

Alexander notes pending home sales, which often foreshadow future deals, have been strong. And mortgage applications have been up. All told, economists expect the National Association of Realtors to report Friday that existing home sales rose 1.3% in March to a seasonally adjusted annual rate of 5.6 million.


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