March Home sales have decreased to the slowest pace since 2009

The high real estate mortgage rates and anxiety over the broader economy for a weak start for the spring housing market is very important.

The formerly owned homes in March decreased by 5.9 % from February to 4.02 million units on an annual seasonal basis, according to the National Association of Real Estate Bidgers. This is the slowest pace of March sales since 2009.

Sales were 2.4 % less than in March 2024 and decreased across all areas of the month. They have decreased in the West, which is the most batch country area, a decrease of more than 9 %. However, the West was the only area that saw a profit on an annual basis, due to a strong activity in the states of Rocky Mountain, where job growth was strong.

This number depends on the closure, so the contracts signed most likely in January and February, when the average fixed mortgage rate for 30 years was more than 7 %. It did not decrease significantly less than 7 % until February 20, according to mortgage news daily.

“The purchase of the house and the sale remained slow in March due to the challenges of bearing the costs associated with the high mortgage rates,” said Lawrence Yun, chief economist in fire. “Residential housing is currently transferring at its lowest historical levels, indicating the disturbing possibility of the less economic movement of society.”

Sales decreased despite the sharp increase in the available lists. At the end of March, there were 1.33 million units for sale, an increase of about 20 % of March 2024. At the pace of current sales, equivalent to the offer for 4 months, which is still on the lean side. The 6 -month offer is a balanced market between the buyer and the seller.

More inventory and sales are slower, they started cold on prices. The average price of the current house that was sold in March was $ 403,700. This is still high at all for this month, but it rose by only 2.7 % of last March. This annual comparison has been shrinking since December and it is the smallest gain since August.

Yoon said: “In a flagrant contradiction with stock and bond markets, the family’s wealth in residential real estate is still reaching new horizons.” “With the evaluation of real estate assets at 52 trillion dollars, according to the Federal Federal Reserve, every percentage of home prices adds more than $ 500 billion to the family’s public budget.”

Buyers for the first time make up 32 % of the market in March, as in March 2024. Historically, they constitute approximately 40 %.

All inscriptions fell to 26 % from 28 % in the previous year, but investors kept 15 % of sales.

Looking at the future, NAR is already reporting a rise in canceled contracts in March, and given the fluctuations of the stock market in April, it may increase.

“The march numbers are bad, but it is likely to get worse,” said Robert Freik, economist at the Federal Credit Company. “In addition to the current high prices and high real estate mortgage rates, home furniture prices are likely to rise soon due to customs tariffs, increased anxiety among consumers due to inflation and jobs may amplify instinct on Hunker that many families already feel.”