U.S. existing-home sales drop for fourth time in five months
Sales decreased despite lower mortgage rates, sustained wage gains and slower home price appreciation.
Sales of previously owned U.S. homes eased more than forecast in March, suggesting the housing market is still finding its footing after a weak 2018.
Contract closings fell to a 5.21 million annual rate, down 4.9% from February’s downwardly revised pace, the National Association of Realtors (NAR) said Monday. The median sales price rose 3.8% from a year earlier to $259,400.
‘A cooling market’
Sales decreased for a fourth time in five months despite lower mortgage rates, sustained wage gains and slower home price appreciation. The data signal the residential real estate sector may need more time to stabilize after sales fell to a three-year low in January. The report adds to signs of a cooling market in March, including a government report Friday showing housing starts fell to the slowest pace since May 2017.
Other data signal greater momentum in the critical spring season, from homebuilder sentiment rising to a six-month high to mortgage applications at their highest level in almost nine years.
“There’s a supply-demand mismatch,” Jessica Lautz, NAR’s vice president of demographics and behavioral insights, said at a briefing in Washington. “More inventory is needed at the lower end and a price reduction may be needed at the upper end,” she said, adding that NAR projects sales to accelerate later this year.
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