The price of a house sold in March set a record
Key takeaways:
- March sales were 4.5% lower than the exact period in 2021.
- The median cost of a current house sold in March was $375,300, an expansion of 15% from March 2021. That’s the highest median cost ever recorded by the Realtors.
- At the end of March, there were 950,000 houses for sale, a decline of 9.5% year over year. At the current sales rate, that represents a two-month supply.
According to the National Association of Realtors, the sales of present houses fell 2.7% in March to a seasonally adjusted, annualized rate of 5.77 million units. February’s reading was adjusted downward with a larger-than-usual dent, from 6.02 million units to 5.93 million.
March sales were 4.5% more down than the same period in 2021.
The reading is based on closings, pointing out the contracts were probably signed in January and February, when mortgage rates started to grow but had not yet hit up as sharply as they did in March. According to Mortgage News Daily, the average rate on the 30-year set mortgage stood at 3.29% at the start of January and increased to 3.9% by February. The 30-year fixed rate now stays at 5.35%.
Higher rates worsened an already expensive market for customers. The median price of an existing home sold in March was $375,300, 15% from March 2021. That’s the highest median cost ever recorded by the Realtors.
According to Realtor.com, with rates increasing and prices extremely higher, the average borrower is paying nearly 38% more on the monthly payment than they would have for the same house one year ago, according to Realtor.com.
Prices continue to increase because the supply of homes for sale is still meager amid strong demand from millennials. At the end of March, there were 950,000 houses for sale, a decline of 9.5% year over year. At the current sales rate, that means a two-month supply.