Existing Home Sales Decline Again, But the Big Bust Starts Next Month – Mish Talk

The National Association of Realtors (NAR) reports Existing Home Sales Slip 2.7% in March. 

Key Highlights 

• Existing-home sales fell for the second straight month in March to a seasonally adjusted annual rate of 5.77 million. Sales were down 2.7% from the prior month and 4.5% from a year ago.
• With slower demand, the inventory of unsold existing homes increased to 950,000 as of the end of March. That would support 2.0 months at the monthly sales pace.
• The median existing-home sales price rose to $375,300, up 15% from one year ago.
• Total housing inventory at the end of March totaled 950,000 units, up 11.8% from February and down 9.5% from one year ago (1.05 million). 
• Unsold inventory sits at a 2.0-month supply at the present sales pace, up from 1.7 months in February and down from 2.1 months in March 2021.
• The median existing-home price for all housing types in March was $375,300, up 15.0% from March 2021 ($326,300), as prices rose in each region. This marks 121 consecutive months of year-over-year increases, the longest-running streak on record.
• Individual investors or second-home buyers, who make up many cash sales, purchased 18% of homes in March, down from 19% in February but up from 15% in March 2021. 
• All-cash sales accounted for 28% of transactions in March, up from both the 25% recorded in February and from 23% in March 2021.
• Cash sales made up a larger fraction of transactions, climbing to the highest share since 2014.