Existing us home sales reach 18-month high

The Midwest led the rise in property sales (Des Moines, Iowa)  Photo: Jason Mrachina

Total existing-home sales increased 6.1 per cent to a seasonally adjusted annual rate of 5.19 million in March from 4.89 million in February — the highest annual rate since September 2013 (also 5.19 million). Sales have increased year-over-year for six consecutive months and are now 10.4 per cent above a year ago, the highest annual increase since August 2013 (10.7 per cent). March's sales increase was the largest monthly increase since December 2010 (6.2 per cent).

Lawrence Yun, NAR chief economist, says the housing market appears to be off to an encouraging start this spring: "After a quiet start to the year, sales activity picked up greatly throughout the country in March.

"The combination of low interest rates and the ongoing stability in the job market is improving buyer confidence and finally releasing some of the sizable pent-up demand that accumulated in recent years."

Despite the rise in sales, though, total housing inventory at the end of March climbed 5.3 per cent to 2 million existing homes, and is now 2 per cent above a year ago.

Median existing-home price for all housing types in March was $212,100, 7.8 per cent above March 2014 and the 37th consecutive month of year-over-year price gains and the largest since February 2014 (8.8 per cent).

"The modest rise in housing supply at the end of the month despite the strong growth in sales is a welcoming sign," adds Yun. "For sales to build upon their current pace, homeowners will increasingly need to be confident in their ability to sell their home while having enough time and choices to upgrade or downsize. More listings and new home construction are still needed to tame price growth and provide more opportunity for first-time buyers to enter the market."