U.S. Housing Market Enjoys Record-Setting Prices in March as Sales Slide

According to NAR exsiting-home sales decreased in March where home prices saw record highs. Despite month-over-month drops, all 4 major US areas experienced y-o-y gains in home sales. 

Although home prices are increasing and affordability is decreasing,, buyers ahve not lost interest in the marlet and sales in March would have been higher if there were more homes for sale. Mortgage rates are a bit higher but they are still in favorable limits. 

The y-o-y median home price was 17.2% higher ($329,000) from $280,000 a year ago. According to Realtor.com, hottest metro areas in March were Manchester, N.H.; Concord, N.H.; Vallejo, Calif.; Burlington, N.C.; and Springfield, Ohio.

At the end of March total housing inventory was 1.07 million units which is 3.9% higher than February and 28.2% lower than a year ago. Unsold inventory equaled to 2.1-month supply close to 2.0-month supply in Febraury and lower than a year ago with 3.3-month supply in March 2021. 

Given the low supply in housing market, homeowners enjoy remarkable equity gains while renters have a hard time to become homeowners. Renting rates are also higher making lives harder especially in more expensive areas. Limited supply has shoretned the number of days properties remained on the market to 18 days in March down from 29 days a year ago. Decrease in affordability is also visible in the percentage of first-time homer-buyers which equals to 32% in March which is lower than 34% a year ago. 

Compared to a year ago, existing home prices increased in each of the 4 major metro areas in which median homeprices increased for 16.9% in northeast, 0.8% in midwest, 15.9% in south and 15.5% in west. 

Again, Compared to a year ago, median home prices increased in each of the 4 major metro areas in which median homeprices increased for 21.4% in northeast, 13.5% in midwest, 15.6% in south and 16.8% in west.