Existing Home Sales Rise Sharply in March, Up 6.8% to 5.35M
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Existing homes sales rose last month as home buyers have been scrambling to take advantage of the government tax credits that were implemented to stimulate a devastated real estate market.
The jump in home resales was more than expected, increasing 6.8 percent in March to an annual rate of 5.35 million from a revised annual rate of 5.01 million in February. Analysts had expected the sales of existing homes to rise to an annual rate of 5.25 million last month.
Year over year sales for March were up 16.1 percent from 4.61 million in the same month last year.
The federal tax credit, which allows a benefit of $8,000 for buyers purchasing their first home, caused 44 percent of all homes purchased in March to be bought by those who have not owned a home previously. The number of all cash sales remained at 27 percent.
"Sales have been above year-ago levels for nine straight months, and inventory has trended down from year-ago levels for 20 months running," said National Association of Realtors' chief economist Lawrence Yun.
The sale of existing homes rose across all regions of the US last month, with the 7.2 percent increase in the Midwest leading the way. Sales in the South increased 7.1 percent, were up 6.6 percent in the West and grew 6 percent in the Northeast.
The median price of homes sold was up 0.4 percent in March to $170,000 from the prior year period, while the total housing inventory rose 1.5 percent to 3.58 million existing homes for sale.
The jump in home resales was more than expected, increasing 6.8 percent in March to an annual rate of 5.35 million from a revised annual rate of 5.01 million in February. Analysts had expected the sales of existing homes to rise to an annual rate of 5.25 million last month.
Year over year sales for March were up 16.1 percent from 4.61 million in the same month last year.
The federal tax credit, which allows a benefit of $8,000 for buyers purchasing their first home, caused 44 percent of all homes purchased in March to be bought by those who have not owned a home previously. The number of all cash sales remained at 27 percent.
"Sales have been above year-ago levels for nine straight months, and inventory has trended down from year-ago levels for 20 months running," said National Association of Realtors' chief economist Lawrence Yun.
The sale of existing homes rose across all regions of the US last month, with the 7.2 percent increase in the Midwest leading the way. Sales in the South increased 7.1 percent, were up 6.6 percent in the West and grew 6 percent in the Northeast.
The median price of homes sold was up 0.4 percent in March to $170,000 from the prior year period, while the total housing inventory rose 1.5 percent to 3.58 million existing homes for sale.
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