Existing home sales declined for the second consecutive month, dropping 2.7% in March to a seasonally adjusted rate of 5.77 million, the National Association of Realtors reported.
Compared with March 2021, existing home sales declined 4.5%.
“The housing market is starting to feel the impact of sharply rising mortgage rates and higher inflation taking a hit on purchasing power,” stated Lawrence Yun, NAR’s chief economist. “Still, homes are selling rapidly, and home price gains remain in the double-digits.”
Total housing inventory increased 11.8% in March to 950,000 units and unsold inventory was at a 2.0-month supply at the current sales pace.
The median existing home price for all housing types was $375,300, a 15.0% surge compared with March 2021 and the 121st consecutive month of year-over-year home price increases, the longest streak ever recorded.
“Home prices have consistently moved upward as supply remains tight,” Yun added. “However, sellers should not expect the easy-profit gains and should look for multiple offers to fade as demand continues to subside.”
Regionally, existing home sales dropped 2.9% in the Northeast, 4.5% in the Midwest and 3.0% in the South. Existing home sales in the West were unchanged.
The full NAR report can be found here.
