For the second month in a row, existing home sales were down across the U.S., according to the National Association of Realtors.
Total existing-home sales slipped 2.7 percent from February to a seasonally adjusted annual rate of 5.77 million in March. Year-over-year, sales were down 4.5 percent.
Regionally, the West was the only part of the country to hold steady in the sales department. Month-over-month, sales were down all all regions expect the West, though sales were down everywhere on the annual basis.
“The housing market is starting to feel the impact of sharply rising mortgage rates and higher inflation taking a hit on purchasing power,” said Lawrence Yun, NAR’s chief economist. “Still, homes are selling rapidly, and home price gains remain in the double-digits.”
While sales slid, prices continued to rise. According to NAR, the median existing-home price for all housing types in March was $375,300, up 15 percent from March 2021 when the median stood at $326,300. This marks 121 consecutive months of year-over-year increases, the longest-running streak on record.
“Home prices have consistently moved upward as supply remains tight,” Yun said. “However, sellers should not expect the easy-profit gains and should look for multiple offers to fade as demand continues to subside.”
Total housing inventory at the end of March totaled 950,000 units, up 11.8 percent from February and down 9.5 percent March 2021. Unsold inventory sits at a two-month supply, up from 1.7 months in February and down from 2.1 months in March 2021.