Current sales of existing homes are, using history as an gauge, underperforming, according to economists from the National Association of Realtors.
Total existing-home sales remained the same in March as they were in February, falling only 0.2 percent to a seasonally adjusted annual rate of 4.59 million. Sales were up 7.5 percent-4.96 million units-in March last year.
"There really should be stronger levels of home sales given our population growth," said Lawrence Yun, NAR's chief economist, in a statement. "In contrast, price growth is rising faster than historical norms because of inventory changes."
Housing inventory rose 4.7 percent to 1.99 million existing homes available in March. Homes were typically on the market for 55 days, down seven days from February.
First-time buyers comprised 30 percent of purchases, an increase from February's 28 percent. NAR President Steve Brown hinted that the increase in first-time buyers could be due to a gradual easing of mortgage underwriting standards and a growing inventory in the lower price ranges as once first-time homeowners begin leaving their starter homes for new ones.
