Existing
home
sales
slumped
last
month
under
the
weight
of
elevated
mortgage
rates.

Existing
home
sales
receded
by
4.3%
in
March
to
a
seasonally
adjusted
annual
rate
of
4.19
million,
down
from
4.38
million
in
February,
according
to
a

report
released
Thursday
by
the


National
Association
of
Realtors
(NAR).
Year
over
year,
sales
fell
by
3.7%.

The
median
price
for
all
types
of
existing
homes
rose
to
$393,500,
an
increase
of
4.8%
from
the
median
price
of
$375,300
one
year
ago.
Existing
home
sales
posted
a
year-over-year
price
gain
for
the
ninth
consecutive
month
and
reached
the
highest
price
ever
for
the
month
of
March.
Sales
slumped
in
every
region
except
for
the
Northeast. 

“Though
rebounding
from
cyclical
lows,
home
sales
are
stuck
because
interest
rates
have
not
made
any
major
moves,”
NAR
chief
economist

Lawrence
Yun
said
in
a
statement.
“There
are
nearly
six
million
more
jobs
now
compared
to
pre-COVID
highs,
which
suggests
more
aspiring
home
buyers
exist
in
the
market.”

The
inventory
of
existing
homes
has
been
steadily
increasing,
despite
elevated

mortgage
rates.
At
the
end
of
March,
total
housing
inventory
sat
at
1.11
million
units,
up
4.7%
from
February
and
up
14.4%
from
one
year
ago.
Meanwhile,
unsold
inventory
sat
at
a
3.2-month
supply
at
the
current
sales
pace,
up
from
2.9
months
in
February
and
2.7
months
in
March
2023. 

As
of
April
12,
there
were
526,000

active
single-family
listings
on
the
market,
up
2.6%
from
the
previous
week,
according
to

Altos
Research
data.
This
uptick
in
inventory
is
a
function
of
high
and

rising
mortgage
rates,
according
to
Mike
Simonsen,
founder
and
president
of

Altos
Research. 

“More
inventory
is
always
welcomed
in
the
current
environment,”
Yun
added.
“Frankly,
it’s
a
great
time
to
list
with
ongoing
multiple
offers
on
mid-priced
properties
and,
overall,
home
prices
continuing
to
rise.”

Meanwhile,

new
construction
of
both
single-family and
multifamily
homes
receded
in
March.

Homebuilder
confidence
also
stagnated
in

April
due
to
elevated

mortgage
rates,
coupled
with
a
stronger-than-expected

inflation
reading.

“Prospective
home
buyers
face
a
very
confusing
housing
market,”

Bright
MLS
chief
economist
Lisa
Sturtevant
said
in
a
statement.
“Mortgage
rates,
which
had
been
expected
to
fall
in
2024,
have
inched
up
close
to
7%
and
seem
poised
to
remain
higher
for
longer. 

“Inventory
has
started
to
increase,
but
the
market
is
still
competitive
with
sellers
still
getting
multiple
offers.
And
now,
in
the
wake
of
the
proposed
NAR
settlement,
there
is
new
confusion
about
how
buyers
and
sellers
will
work
with
a
real
estate
agent.”

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