Existing home sales rose more than expected in March, bouncing back from a dismal February (+5.1% in March from revised -7.3% Feb). Year-over-year, existing home sales rose just 1.5% to a SAAR of 5.33m (vs 5.28m expectations). However, sales dropped at the lowest-end (due to unaffordability and lack of supply) and sales at the highest-end (above $1mm) disppointed, rising at onbly 4.6% YoY due to buyersbeing "spooked by January's stock market correction."
Home Sales growth has stagnated...
As NAR explains,
Closings came back in force last month as a greater number of buyers – mostly in the Northeast and Midwest – overcame depressed inventory levels and steady price growth to close on a home," he said.
"Buyer demand remains sturdy in most areas this spring and the mid-priced market is doing quite well. However, sales are softer both at the very low and very high ends of the market because of supply limitations and affordability pressures."
The median existing-home price for all housing types in March was $222,700, up 5.7 percent from March 2015 ($210,700). March's price increase marks the 49th consecutive month of year-over-year gains.
So both high- and low-end sales disappointed...
"The choppiness in sales activity so far this year is directly related to the unevenness in the rate of new listings coming onto the market to replace what is, for the most part, being sold rather quickly," adds Yun. "Additionally, a segment of would-be buyers at the upper end of the market appear to have been spooked by January's stock market correction."