Sales of existing homes increased 6.8 percent in March to a seasonally adjusted annual rate of 5.35 million units from February’s rate of 5.01 million units, according to an April 22 National Association of Realtors news release. The pace remains 16.1 percent above the March 2009 rate of 4.61 million units.
“Sales have been above year-ago levels for nine straight months, and inventory has trended down from year-ago levels for 20 months running,” Lawrence Yun, NAR’s chief economist, said in the release. “The home buyer tax credit has been a resounding success as these underlying trends point to a broad stabilization in home prices. This is preserving perhaps $1 trillion in largely middle class housing wealth that may have been wiped out without the housing stimulus measure.”
The sales rate of single-family existing homes rose 7.3 percent in March to a seasonally adjusted annual rate of 4.68 million units from February’s figure of 4.36 million units, NAR reported. That marked a 13.3-percent increase from the 4.13 million units recorded a year ago. Sales of existing condominiums and co-ops increased 3.1 percent in March to a seasonally adjusted annual rate of 670,000 units from February’s figure of 650,000 units, up 39.3 percent from the 481,000 units reported a year earlier.
By region, existing home sales in the Northeast increased 6 percent in March to an annual rate of 890,000 units, up 25.4 percent from a year ago. The Midwest rose 7.2 percent to an annual pace of 1.19 million units, up 15.5 percent from a year ago. The South increased 7.1 percent to an annual pace of 1.97 million units, up 13.9 percent from a year ago, while the West rose 6.6 percent to an annual rate of 1.3 million units, up 14 percent from a year ago, according to NAR figures.
First-time buyers accounted for 44 percent of home purchases in March, up 2 percent from February, while investors accounted for 19 percent, unchanged from the previous month. Repeat buyers accounted for the remaining transactions. All-cash sales accounted for 27 percent of all purchases while distressed homes accounted for 35 percent.
NAR reported that the median existing home price for all home types logged in at $170,700 in March, up 0.4 percent from a year ago. The median existing single-family home price also came in at $170,700, up 0.6 percent from a year ago, while the median existing condominium price was $170,600, down 0.7 percent from a year ago. Distressed homes typically sold at a 15 percent discount.
By region, the median price in the Northeast was $249,800, up 8.9 percent from a year ago. The Midwest came in at $139,300, up 0.2 percent from a year ago. The South logged in at $154,800, up 5.2 percent from a year ago, while the West came in at $209,400, down 7.9 percent from a year ago.
Existing home inventory increased 1.5 percent in March to 3.58 million units, NAR said. Based on the current sales pace, there is now an 8-month supply of existing homes on the market, down 1.8 percent from a year ago and 21.7 percent from the record 4.58 million units reached in July 2008.
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