The sales of American housing previously occupied were slowed in March, a slow beginning of the season of purchase of spring housing as high mortgage rates and the increase in prices discouraged the possible housing buyers.
Existing housing sales fell 5.9% last month from February to a seasonally adjusted annual rate of 4.02 million units, the National Association of Real Estate Agents said Thursday. The decrease in March sales is the largest monthly drop since November 2022, when sales fell 6.7% compared to the previous month.
Sales fell 2.4% compared to March last year. According to FACTSET, the latest house sales did not reach 4.12 million economists of rhythm, according to Factset.
The average cost of an United States mortgage, which rose to its highest level in two months last week, is a significant barrier for possible housing buyers, said Lawrence Yun, chief economist of Nar.
“The mobility of residential housing, currently in historical minimums, points out the problematic possibility of less economic mobility for society,” said Yun.
Housing prices increased annually during the month 21 consecutive, although at a slower pace. The national medium sale price increased 2.7% in March from a year prior to $ 403,700, a historical maximum for March, but the smallest annual increase since August.
The United States real estate market has been in a sales fall since 2022, when mortgage rates began to rise from the Pandemic era. The sales of US housing previously occupied fell last year to their lowest level in almost 30 years.
The highest mortgage rates also decreased the beginning of the spring housing purchase season in 2024. This year, after rising to a little more than 7% in mid -January, the average rate in a 30 -year mortgage has remained mainly high, rising last week to 6.83%, its highest level in eight weeks, according to the Buyer of Mortgiles Freddie Mac.
Sales fell in March, even when homemade buyers more houses arrived on the market for the season of purchase of spring houses.
There were 1.33 million homes not sold at the end of last month, an increase of 8.1% as of February, said Nar.
That translates into a 4 -month supply to the current sales rate, compared to a 3.2 -month rate at the end of March last year. Traditionally, a supply of 5 to 6 months is considered a balanced market between buyers and vendors.
“I felt that more inventory would lead to more sales, but that is not the case,” Yun said.
