(NAR) The existing home sales in the US fell by 2.7% in March from February to a seasonally adjusted annual rate of 5.77 million.
The fall in existing house sales happened for the second straight month, with the level now down 4.5% from the prior year.
First-time buyers accounted for 30% of the home sales in March, an improvement from 29% in February, but below 32% in the comparable month of last year. The increase is believed to be fueled by a move to lock in at the current mortgage rates before they rise further.
The falling house sales came even as the prices continued to surge, adding 15% year-over-year, to $375,300. The houses have now increased for 121 straight months, a record consecutive gain.
The total housing inventory at the end of March was 950,000, an increase of 11.8% from February, but 9.5% below last year. The unsold inventory is now at 2.0-months’ supply, an improvement from 1.7 months in February but below 2.1 months in the prior year.
NAR’s chief economist Lawrence Yun says with mortgage rates are expected to continue rising, and house transactions will decline by 10% this year, leading to a readjustment of prices.
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