By Alex Veiga, associate commercial writer
Sales of previously occupied American houses slowed down in March, a slow start to the purchase season of spring houses as high mortgage rates and upwards discouraged prices for buyers of potential houses.
Sales of existing houses dropped 5.9% last month at an annual rate seasonally adjusted by 4.02 million units, the National Association of Realtors announced Thursday. The drop in sales in March has been the biggest monthly decline since November 2022, when sales dropped by 6.7% compared to the previous month.
Sales fell 2.4% compared to March from last year. The last sales of houses fell from 4.12 million rhythms that economists were waiting for, according to FactstSet.
The average cost of an American mortgage, which reached its highest level in two months last week, is an important obstacle for potential buyers, said Lawrence Yun, chief economist of NAR.
“The mobility of residential housing, currently in historic stockings, indicates the embarrassing possibility of less economic mobility for the company,” said Yun.
The prices of houses have increased on an annual basis for the 21st consecutive month, although a slower pace. The national median selling price increased by 2.7% in March of the previous year to $ 403,700, a record level for March, but the smallest annual increase since August.
The US housing market has been in a sales crisis since 2022, when mortgage rates have started to set up hollows in the pandemic era. Sales of previously occupied American houses dropped last year at their lowest level in almost 30 years.
Higher mortgage rates have also reduced the start of the spring purchasing season in 2024. This year, after reaching just over 7% in mid-January, the average rate on a mortgage of 30 years was mainly high, climbing last week at 6.83%, his highest level in eight weeks, according to the mortgage buyer Freddie Mac.
Sales fell in March, even if buyers of houses, more houses hit the market for the purchase season of spring household.
There were 1.33 million unsold homes at the end of last month, an increase of 8.1% compared to February, said NAR.
This results in an offer of 4 months at the current sale rate, against a pace of 3.2 months at the end of March last year. Traditionally, a supply of 5 to 6 months is considered a balanced market between buyers and sellers.
“I thought that more inventory would lead to more sales, but that is not the case,” said Yun.
Originally published:
California Daily Newspapers
