US Existing Home Sales Decline Sharply in March, Slowest Pace Since 2009

March Existing Home Sales Decline

• 📉 Existing home sales in March fell by a significant 5.9% from February, reaching a seasonally adjusted annualized rate of 4.02 million units.
• ⚠️ This represents a 2.4% decrease from March of the previous year, marking the slowest March sales pace recorded since 2009, during the Great Recession.
• 💡 The data reflects contracts likely signed in January and February when mortgage rates were above 7%, before the market volatility seen in April.

Rising Inventory and Price Trends

• 📈 Supply is increasing rapidly, with 1.33 million homes for sale at the end of March, a nearly 20% rise from the prior year.
• 📊 This surge in inventory has led to a 4-month supply, which is still considered lean compared to the 6 months typically defining a balanced market.
• 💰 While prices are showing signs of cooling due to slower sales and higher inventory, the median price of an existing home in March was $43,700, an all-time high for the month, though its annual increase has shrunk to 2.7%.

Buyer Demographics

• 🏠 First-time buyers constituted 32% of the market, remaining the same as the previous year, which is below the ideal 40% benchmark.
• 💰 All-cash purchases dropped to 26% from 28% year-over-year, while investor activity held steady at 15% of total sales.