A “for sale” sign is located in a house in Miami, Florida, USA April 16, 2025.
Bello Marco | Reuters
The highest mortgage rates and the concern for the economy in general are making a weak start to the most important spring real estate market.
Housing sales previously owned in March fell 5.9% from February to 4.02 million units in an annualized basic concordation adjusted seasonally to the National Association of Real Estate Agents. Sales were 2.4% lower than March last year.
Sales fell into all regions month by month, but fell more in the west, less than 9%. That is the most expensive region in the country. The West, however, was the only region to see a gain year after year, due to strong activity in the states of Rocky Mountain, where employment growth is strong.
This count is based on closures, therefore, contracts probably signed in January and February, when the average rate of the popular mortgage fixed to 30 years was approximately 7%. It did not fall solidly below 7% until February 20, according to the news of mortgages daily.
“The purchase of homes and the sale remained slow in March due to the affordable challenges associated with high mortgage rates,” said Lawrence Yun, chief economist of Nar. “The mobility of residential housing, currently in historical minimums, points out the problematic possibility of less economic mobility for society.”
Sales fell despite a strong increase in available lists. At the end of March, there were 1.33 million units for sale, an increase of almost 20% since March 2024. At the current sales rate, which is equivalent to a 4 -month supply, which is still on the thin side. A 6 -month supply is considered a balanced market between the buyer and the seller.
More inventory and slower sales are starting to put the cold in prices. The average price of an existing house sold in March was $ 403,700. That remains a historical maximum for the month, but has only increased 2.7% last March. This annual comparison has been reduced since December and is the smallest gain since August.
“In a marked contrast to shares and bond markets, domestic wealth in residential real estate continues to reach new heights,” said Yun. “With the assessment of real estate assets in $ 52 billion, according to the Federal Reserve Funds, each percentage gain in housing prices add more than $ 500 billion to the general balance.”
Buyers for the first time represented 32% of the market in March, the same as that month last year. Historically they constitute approximately 40%.
All Cash’s sales fell to 26% from 28% of the previous year, but investors remained stable in 15% of sales.