The median home price reported by the National Association of Realtors increased 5.1% in March to $212,100. Prices are 7.8% higher than the same month of the previous year. The magnitude of price increases continues to expand despite growth in the number of listings on the market due to sales growth outpacing inventory.
The seasonally adjusted annualized rate of home sales increased 6.1% in March to a pace of 5.19 million homes according to data publish by the National Association of Realtors. This was 10.4% higher than the same time last year, which is the largest year-over-year increase since August of 2013. With interest rates at incredibly low levels and continuing to decline, the housing market has seen strong numbers at the beginning of the year and is likely headed toward a strong summer season.
The number of homes available decreased 2% compared to the same month of the previous year, with 2 million homes available for sale in March. This translated to 4.6 months of supply. Historically, inventory typically remains low during March due to the cool weather and then loosens as the weather warms in April. We should start to see this number improve as we move into the summer.
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