NAR: Existing-Home Sales Rise Again in March

NAR: REALTOR® Magazine Online
Sales of existing homes edged up in March following a strong rebound in February, according to the NATIONAL ASSOCIATION OF REALTORS®.

Total existing-home sales — including single-family, townhomes, condominiums, and co-ops — rose 0.3 percent to a seasonally adjusted annual rate of 6.92 million units in March from a pace of 6.90 million in February, but were 0.7 percent below a 6.97 million-unit level in March 2005.

David Lereah, NAR’s chief economist, says sales are leveling out. “It’s a good sign to see home sales holding close to the level of a strong rebound in the month before,” he says. “This is additional evidence that we’re experiencing a soft landing. We may see some minor slowing in home sales as interest rates rise, but the market clearly is stabilizing.” Lereah expects 2006 to be the third strongest year on record for home sales.

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.32 percent in March, up from 6.25 percent in February; the rate was 5.93 percent in March 2005.

“We now see appreciation cooling to single-digit rates of price growth — another sign that the market is normalizing,” Lereah says. The national median existing-home price for all housing types was $218,000 in March, up 7.4 percent from March 2005 when the median was $203,000. The median is a typical market price where half of the homes sold for more and half sold for less. Historic price data has been revised back to 1989, including updates to reflect geographic changes over time, but price patterns are consistent with previously reported data.

Total housing inventory levels rose 7.0 percent at the end of March to 3.19 million existing homes available for sale, which represents a 5.5-month supply at the current sales pace.
NAR President Thomas M. Stevens from Vienna, Va., says changes in the housing market mean consumers need more professional guidance.

“Changing waters require navigational adjustments, and this is especially true for home sellers in most areas who are now dealing with buyers on equal footing — it’s no longer a seller’s market,” says Stevens, senior vice president of NRT Inc. “Most buyers in today’s market are well-informed and have agents that represent their interests, so sellers need good advice on how to show and market their homes in the current environment, as well as negotiation skills — critical values that real estate agents bring to the table.”

Single-family home sales rose 0.3 percent to a seasonally adjusted annual rate of 6.07 million in March from 6.05 million in February, and were 0.5 percent below the 6.10 million-unit pace in March 2005. The median existing single-family home price was $217,300 in March, up 7.8 percent from a year ago.

Existing condominium and cooperative housing sales increased 0.2 percent to a seasonally adjusted annual rate of 854,000 units in March from a level of 852,000 in February, but were 2.0 percent below the 871,000-unit pace a year ago. The median existing condo price was $225,500 in March, up 6.1 percent from March 2005.

Regionally, existing-home sales in the Northeast rose 1.7 percent to an annual sales rate of 1.19 million units in March, and were 2.6 percent higher than a year ago. The median price in the Northeast was $275,000, up 5.0 percent from March 2005.

Existing-home sales in the Midwest increased 1.2 percent to a pace of 1.63 million in March, and were 3.8 percent above March 2005. The median existing-home price in the Midwest was $160,000, up 2.6 percent from a year earlier.

In the South, existing-home sales slipped 0.7 percent in March to a level of 2.67 million, but were 1.5 percent higher than a year ago. The median price in the South was $181,000, up 6.5 percent from March 2005.

Existing-home sales in the West eased 0.7 percent to an annual pace of 1.43 million in March, and were 12.3 percent below March 2005. The median price in the West was $341,000, up 8.3 percent from a year ago.