As the inventory of existing homes remains low, the median price for existing homes rose to $184,300 in March, 11.8 percent higher than March 2012. This is the greatest year-over-year increase since November 2005, when the price rose 12.9 percent. The last time there were 13 consecutive months of year-over-year price increases was from May 2005 to May 2006.
As the inventory of existing homes remains low, the median price for existing homes rose to $184,300 in March, 11.8 percent higher than March 2012. This is the greatest year-over-year increase since November 2005, when the price rose 12.9 percent. The last time there were 13 consecutive months of year-over-year price increases was from May 2005 to May 2006.
The listed inventory, 1.93 million homes, remains 16.8 percent below a year ago at a 4.7-month supply. However, that supply is up 1.6 percent from February.
The association estimated a seasonally adjusted rate of 2.92 million single-family homes, townhomes, condominiums and co-ops were sold in March. This rate of sales is 10.3 percent higher than March 2012, and sales have been above year-ago levels for 21 consecutive months.
"The inventory improvement last month results from a seasonal gain, but conditions continue to broadly favor sellers. We need a housing supply of over 6 months to have a generally balanced market between home buyers and sellers, but it's unlikely we'll get there without greater increases in housing construction," said Lawrence Yun, NAR chief economist, in a statement.
"The good news is home construction is rising and low mortgage rates are continuing to keep affordability conditions at historically favorable levels. The bad news is that underwriting standards remain excessively tight, while renters are getting squeezed by higher rents," Yun said.
The complete release from the NAR is available here.
