Stephen Stanley, chief economist at Amherst Pierpont Securities, said housing demand is solid and steady, but inventory continues to remain low.
The NAR said the 1.98 million homes on the market at the end of March is down 1.5 percent from a year ago. According to nasdaq, there is a 4.5 month supply of homes at the current rate of sales. Lawrence Yun, NAR’s chief economist, said buyers at the lower end of the market faced the most severe shortage of homes, while the stock market’s rough start to the year may have discouraged higher-end home sales.
“The choppiness in sales activity so far this year is directly related to the unevenness in the rate of new listings coming onto the market to replace what is, for the most part, being sold rather quickly,” Mr. Yun said, noting homes stayed on the market an average of 47 days in March, down from 59 days in Feb.
Marking the 49th consecutive month of year-over-year gains, the limited supply of homes for sale drove the national median sale price up 5.7 percent over last March to $222,700.
Sales of previously owned homes in the Midwest rose 9.8 percent over the prior month to an annual rate of 1.23 million, while sales in the Northeast increased 11.1 percent to an SAAR of 700,000. In the West, sales rose 1.8 percent in March over Feb., while sales in the South increased by 2.7 percent.
While low interest rates, an improving job market and rising rents are typically good signs for the traditional spring buying season, low inventory and rising prices could dent homebuying. Furthermore, housing starts fell 8.8 percent in March, the lowest level of home building since October; and home builder sentiment held at 58 for the third straight month, following eight months above 60. ##
(Photo credit: newscourier/Rebecca Croomes)
