US home sales slowed in March after mortgage rates and house prices rose

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Median home prices surged in the United States in March, but the housing market is showing signs of slowing.

The country’s real estate market saw the fastest transactions and the most homes sold above their asking price last month, making it the hottest March on record, according to a Friday Redfin report.

Meanwhile, median home prices rose 17.3% year-over-year and 6.2% from February, the fastest monthly increase in the same time frame. year since 2013.

However, home sales – adjusted for seasonality – fell 4% from February and 8% from March 2021, signaling a slowdown in the market as mortgage rates rose.


“Although pricey coastal markets began to show the first signs of a slowdown in late March, nationwide sales data for the full month reflects the hottest March market on record, as homes sold last month have mostly been under contract in February,” said Daryl Fairweather, head of Redfin. economist, said in the report.

A typical home was on the market for just over a month before finding a buyer in March, and since the start of the year, homes have spent 11 fewer days on the market, according to a separate report by real estate agent.com Thursday..

“We expect the combination of soaring mortgage rates and record home prices to drive more buyers out of the market,” Ms. Fairweather said. “Unfortunately, owners are also turning their backs on the market. Instead of being motivated to list before prices weaken, potential home sellers may choose to wait for the impending market cooling.


Of 88 major metropolitan areas, 79 saw lower home sales compared to a year ago, according to data from Redfin. The largest sales declines were recorded in North Port, Florida, with 30%; West Palm Beach, Florida, with 24%; and Lake County, Illinois, with 21%. The largest increases were recorded in Fresno, California, with 6%; Philadelphia with 6%; and Oxnard, California, with 3%.

Overall, the majority of metropolitan areas in the United States also experienced a decline in new listings and active listings, which led to tighter inventory and higher prices.


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