Sales of existing homes fell 2.4 percent in March, partially reversing the surge of home sales in February.
The National Association of Realtors said sales of previously owned homes fell to an annual rate of 4.44 million last month. This was below expectations for sales of 4.5 million.
The February surge was revised down slightly, to an annualized 4.55 million from the initial estimate of 4.58 million.
Compared with March of last year, sales are down by 22 percent thanks to sparse inventory and higher mortgage rates.
“Home sales are trying to recover and are highly sensitive to changes in mortgage rates,” said NAR Chief Economist Lawrence Yun. “Yet, at the same time, multiple offers on starter homes are quite common, implying more supply is needed to fully satisfy demand. It’s a unique housing market.”
The median selling price fell 0.9 percent from a year ago, the largest decline since 2012 and the second consecutive monthly decline. The median price data, however, is distorted by the mix of homes sold in the month and is viewed as a less reliable indicator than data on repeat sales from the Case-Shiller index or the Federal Housing Finance Agency.
Homes are still selling rapidly. The average time on the march fell to 29 days in March, down from 34 days in February.
Single-family home sales edged down to a seasonally adjusted annual rate of 3.99 million in March, down 2.7 percent from 4.10 million in February and 21.1 percent below the year-ago level. The median existing single-family home price was $380,000 in March, down 1.4 percent from a year ago.
The average rate on a 30-year fixed mortgage was 6.54 percent in March, up from 6.26 percent in February but below the November peak of just above seven percent. Last week, the 30-year mortgage rate averaged 6.27 percent.