Existing Home Sales Jump 6.1% in March
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Fuse/Thinkstock(WASHINGTON) — The spring home buying season got off to a good start last month, with sales of existing U.S. homes jumping more than 6.1 percent, according to the National Association of Realtors.
The seasonally adjusted annual rate in March — 5.19 million, up from 4.89 million in February — was the highest in 18 months.
The increase can be partly attributed to better weather and improved economic conditions.
“The combination of low interest rates and the ongoing stability in the job market is improving buyer confidence and finally releasing some of the sizable pent-up demand that accumulated in recent years,” said Lawrence Yun, the chief economist of the National Association of Realtors.
But, he notes, there is one concerning point: “We have a shortage of inventory so demand is rising but the supply is not.”
Yun elaborates, “For sales to build upon their current pace, homeowners will increasingly need to be confident in their ability to sell their home while having enough time and choices to upgrade or downsize. More listings and new home construction are still needed to tame price growth and provide more opportunity for first-time buyers to enter the market.”
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