The Positives from March Existing Home Sales

The US housing market had mixed results in March 2021.

march 2021 existing home salesEven though March was the 2nd straight month of contracting existing home sales, year-over-year gains provide a positive sign for local markets. The 6M+ SAAR for the quarter’s final month was a 12.3% gain over March 2020. Median sales prices rose for the 109th consecutive month, year-over-year, and a remarkable 83% of homes sold within one month of listing.

Repeating a theme, housing inventory will remain a challenge in 2021, as house prices continue their upward arc. March’s 2.1 months of inventory is an inch upward from February (2.0), but a far cry from a balanced market, which is closer to six months.

Existing home sales numbers for March 2021:

  • EHS +12.3% YoY, vs March 2020
  • March SAAR: 6.01M units
  • Median Price: $329,100 (+17.2% YoY)
  • 109th consecutive month of YoY price increases
  • Unsold Inventory: 2.1 months (down from 3.3 YoY)
  • Homes sold <1 month: 83%
  • First-time buyers: 32% (down 2 points YoY)

NAR’s chief economist, Lawrence Yun:

Existing-home sales are off to a strong start at 5.46 million. The trend line for housing starts is increasing and showing steady improvement, which should ultimately lead to more home sales … Mortgage rates have helped with affordability, but it is supply conditions that are driving price growth.

Follow ESA for more information on your local housing market.

Read the full article:
Existing-Home Sales Housing Snapshot | www.nar.realtor

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