MONTHLY MARKET UPDATE FOR MARCH 2023
Nationally, existing home sales jumped 14.5% month-over-month as of last measure, the first monthly gain in 12 months, and representing the largest monthly increase since July 2020, according to the National Association of REALTORS® (NAR). The sudden uptick in sales activity stems from contracts signed toward the beginning of the year, when mortgage rates dipped to the low 6% range, causing a surge in homebuyer activity. Pending sales have continued to improve heading into spring , increasing for the third consecutive month, according to NAR.
New Listings decreased 46 percent for Single Family homes and 39.4 percent for Townhouse-Condo homes. Pending Sales decreased 58.6 percent for Single Family homes and 61.5 percent for Townhouse-Condo homes. Inventory decreased 9 percent for Single Family homes but increased 19 percent for Townhouse-Condo homes.
Median Sales Price decreased 5.6 percent to $968,000 for Single Family homes and 0.8 percent to $645,000 for Townhouse-Condo homes. Days on Market increased 153.3 percent for Single Family homes and 140.0 percent for Townhouse-Condo homes. Months Supply of Inventory increased 33.3 percent for Single Family homes and 90.0 percent for Townhouse-Condo homes.
Monthly sales might have been even higher if not for limited inventory nationwide. At the current sales pace, there were just 2.6 months’ supply of existing homes at the beginning of March, far below the 4 – 6 months’ supply of a balanced market. Inventory remains suppressed in part because of mortgage interest rates, which nearly hit 7% before falling again in recent weeks. Higher rates have continued to put downward pressure on sales prices, and for the first time in more than a decade, national home prices were lower year-over-year, according to NAR, breaking a 131-month streak of annual price increases.