Home >> Daily Dose >> The Week Ahead: Will Existing-Home Sales Rebound in March?
Print This Post Print This Post

The Week Ahead: Will Existing-Home Sales Rebound in March?

pending home sales

The National Association of Realtors will release it latest Existing Home Sales report for April on Tuesday.

Total existing-home sales including single-family homes, townhomes, condominiums, and co-ops fell 4.9% from February to a seasonally adjusted annual rate of 5.21 million in March. Sales as a whole were down 5.4% year over year.

“It is not surprising to see a retreat after a powerful surge in sales in the prior month,” NAR Chief Economist Lawrence Yun said. “Still, current sales activity is underperforming in relation to the strength in the jobs markets. The impact of lower mortgage rates has not yet been fully realized.”

Despite the decline in sales, inventory jumped slightly in March month-over-month, up to 1.68 million from February’s 1.63 million existing homes available for sale, a 2.4% increase year-over-year.

“Further increases in inventory are highly desirable to keep home prices in check,” Yun said. “The sustained steady gains in home sales can occur when home price appreciation grows at roughly the same pace as wage growth.”

According to realtor.com Chief Economist Danielle Hale, this year’s momentum shows promise.

"January pending home sales led to strong February existing home sales but that momentum slipped in March with sales down 4.9% from revised February figures and down 5.1% from last March. Prices showed continued gains, but lost some ground registering up 3.8% from a year ago compared with 3.9% last month,” Hale said. “Even if home sales lose some momentum month to month, they will likely be able to better keep pace with last year's sales in the months ahead as a result of increased buyer purchasing power from lower mortgage rates. In fact, the year over year sales decline abated from 7.5 percent in the fourth quarter to 5.4 percent in the first quarter."

Here’s what else is happening in The Week Ahead:

About Author: Mike Albanese

Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville.
x

Check Also

The Ups and Downs of Reverse Mortgages

A pair of recent articles examine the benefits and challenges of reverse mortgages for senior homeowners. Find out why one industry expert believes they can still be a boon to those looking to tap into their home’s equity.

GET THE NEWS YOU NEED, WHEN YOU NEED IT.

With daily content from MReport, you’ll never miss another important headline in originations, lending, or servicing. Subscribe to MDaily to begin receiving a complimentary daily email containing the top mortgage news and market information.