US housing sales rose sharply in March

April 24, 2018 11:28 amComments Off on US housing sales rose sharply in MarchViews: 13

US housing salesThe US housing sales rose sharply in March amid a surge in the northeastern states and the Midwest, but shortages and high prices remain key obstacles at the start of the spring season. The National Real Estate Association reported that sales of existing homes rose 1.1% to a seasonally adjusted annual figure of 5.6 million units.

The sales data in February remained unchanged. This is the second consecutive month of increasing sales of existing homes on a monthly basis, accounting for about 90% of home sales in the United States.

Sales of existing homes declined by 1.2% on an annual basis in March.

Last month they grew 6.3% in the northeast and 5.7% in the Midwest, after falling due to bad weather in February. In the second month of the year, a decline of 0.4% was recorded in the southern states where most of the sales were concentrated and 3.1% in the western states.

The housing market in the US has a sharp shortage, especially in the lower price segment of the market. This increases the cost of mortgages and is an obstacle to buyers of the first home, which are largely pushed out of the market.

The economists believe that some indecisive buyers are rushing into the market to finalize contracts because they are afraid of a new rise in house prices and mortgage rates.

The average interest rate on mortgages at 30-year fixed interest rate reached 4.47% last week, which is the highest level since January 2014, compared to 4.42% the previous week, according to Freddie Mac.

The number of old homes on the market has grown by 5.7% to 1.67 million units in March. Households have decreased by 7.2% on an annual basis. The offer reported a decline for the 34th consecutive month on an annual basis.

Keeping the pace of sales in March will require 3.6 months to run out of the current stock, up from 3.4 months in February. A supply that is sufficient for six to seven months ahead is considered a healthy balance between supply and demand.

In March, the average house price rose by 5.8% from an year earlier to 250,400 USD. This is the 73rd consecutive month of annual growth.

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