Home sales decrease at the beginning of the essential season of spring purchase as high mortgage rates and price increases prevent buyers

Sales of previously occupied American houses slowed down in March, a slow start of the spring spring season as the raised level of deaths and rising prices discouraged future homes buyers.

Existing home sales fell 5.9% last month from February to an annual seasonal rate of 4.02 million units, the National Realtors Association said Thursday. The fall of sales in March is the biggest monthly decline since November 2022, when sales fell 6.7% from last month.

Sales fell 2.4% compared to March last year. The latest home sales were waiting for the 4.12 million rhythms that economists were waiting for, according to the factset.

The average cost of an American mortgage, which climbed to its highest level in two months last week, is an important obstacle for buyers of potential homes, said Lawrence Yun, NAR leading economist.

“The mobility of housing, currently in historical landing, signals the troublesome possibility of less economical mobility for society,” Yun said.

Home prices increased on an annual basis for 21 consecutive months, albeit at a slower rate. The average national sale priest increased 2.7% in March a year ago to $ 403,700, a high of all time for March, but the smallest annual growth since August.

The US housing market has been in a decline in sales since 2022, when mortgage rates begin to climb the downsides of the Pandemic era. Sales of previously occupied American houses dropped last year to their lowest level at nearly 30 years.

The highest mortgage rates also wet the beginning of the spring season of spring houses in 2024. This year, after climbing only about 7% in mid-January, the average rate in a 30-year-old death has remained largely elevated, climbing 6.83% last week, its highest level at eight. Week, according to Mortgage Buyer Freddie Mac.

Sales fell in March even when more home buyers hit the market for the spring season.

There were 1.33 million unsold houses at the end of last month, an 8.1% increase in February, Nar said.

This translates into a 4-month supply in the current sales peace, from a 3.2-month peace at the end of March last year. Traditionally, a supply of 5 to 6 months is considered a balanced market between buyers and sellers.

“I think more inventory would lead to more sales, but that’s not the case,” Yun said.