According to the National Association of Realtors March showed decent gains for existing home sales. They reported a slight 3.7% gain to a higher than expected annual rate of 5.1 million. The median sale price of existing homes also showed some gain rising 2.2% to $159,600. However, the year on year comparison shows a 5.9% dip in comparison to last months 5.2% reading. The report also showed that there was a slight increase in the number of Homes on the Market at 3.549 million but the rise in sales brought down the supply reading to 8.4 months; which is still very heavy.
Key notes to report: Distressed Homes sales made up 40% of all the sales this month; this is the highest rate in nearly two years.
Existing home sales reached a peak in mid-2005 and have been easing since. Typically, a distinct reverse relationship exists between home sales and mortgage rates. However, sales and mortgage rates both have firmed in recent months. |
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Data Source: Haver Analytics
Keep an eye out for Monday’s New Home sales report