Investors lost interest, too: Sales to all-cash buyers fell 24% year-over-year.
By wolf richter For wolf street,
Sales of all types of previously owned homes — homes, condos, co-ops — took off in March, falling 0.9% year-over-year to $375,700, according to the National Association of Realtors. This was the second consecutive year-over-year decline since February 2012, when the market emerged from the housing bust 1 (Historical Data via YCharts,
For single-family homes, the median price fell 1.4% year-over-year, marking the second year-over-year decline in a row. But for condos, the median price is still up 2.1% year-over-year.
The overall average price declined year-on-year, despite a 3.3% month-on-month increase in February to March. But this is the spring sales season when prices typically rise, and the increase was less than last year’s February to March increase; Hence the big decline year-on-year.
The average price has fallen 9.2% from the seasonal peak in June 2022 (historical data via YCharts):
Sales of previously owned homes fell The seasonally-adjusted annual rate of sales of a disappointing 4.44 million homes fell 2.4% from February to March, which is part of a jump from a deeply-disappointing January in February, which was the worst month since 2010. So there were 12 month-to-month declines in a row through January, an increase in February, and now another decline in March.
Sales were down 22% as compared to March 2022. Sales were down 26.5% as compared to March 2021. Sales were down 15% as compared to March 2019. Sales were down 19% compared to March 2018.
Priced right, almost any property will sell. And the lower prices will bring out buyers which will help stabilize the market given these mortgage rates.
But sellers — including those who bought a house and moved into it but didn’t keep the house they moved off the market, which was supposed to push the price increase all the way up — well, they are now. Still thinking that this too shall pass. “It’s also” the 6%-plus mortgage rates, or rather the 4%-plus mortgage rates we had exactly a year ago, because that’s when the market started to derail.
Actual sales in March – not seasonally adjusted, not the annualized rate – fell 21% 360,000 properties year-on-year. That was up from February, which is due to home sales season almost every year, but it was down from March last year.
sales of single family homes, Jobs in March were at a seasonally adjusted annual rate of 3.99 million, down 2.7% from February and 21% from March last year.
sales of condos and co-ops, At a seasonally-adjusted annual rate of 450,000 in March, were flat with February and down 29% year-over-year.
By region, year-on-year sales fell in all regions (Percentage change from year ago, map via NAR):
Sales to all-cash buyers – often investors and second home buyers – fell 24%. 96,000 properties in March year-on-year from 127,000 properties in March 2022.
Average days on market increased, According to the National Association of Realtors, homes that were actually sold spent 29 days on the market in March, up from 17 days in March last year.
Another measure of average days on the market also lengthened: Homes were either sold or taken off the market after 54 days in March, up from 36 days a year earlier. realtor.com,
month’s supplyAt 2.6 months, up from 1.9 months a year earlier, but remained low by historical standards.
active listing (= total listed inventory minus properties with pending sales), at 563,000 properties, were up 60% from a year earlier. The first three months of the year are typically the low point for active listings, and they will pick up from here if historical patterns hold.
But active listings remain low by historical standards as potential sellers are still trying to avoid rising mortgage rates, and potential buyers have pulled back, and the market — as evidenced by disappointing sales despite low prices. is – partially frozen (via data) realtor.com,
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