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  • Writer's pictureRealFacts Editorial Team

Home Sales Dropped in March—but Prices Kept Climbing

Home with a for sale sign

March home sales remained “stuck” at lower volume while home prices rose, according to the National Association of Realtors. The group said that sales of pre-owned homes fell 4.3%, and the average listing is spending 33 days on the market, up from 29 days in March 2023.

Despite softening demand, home prices seemed to rise last month. The median home sale in March was $393,500, a 4.8% increase from 2023. Although there was a slight inventory increase that helped to cool the 5.6% YoY price increase in February, NAR chief economist Lawrence Yun said, “We need more inventory, definitely, for the health of the market.” February and March saw a period of high but relatively stable mortgage rates. With the 30-year fixed mortgage rate rising to 7.43% as of Monday according to Mortgage News Daily, this should lessen demand even more, allowing prices to deflate.

Median monthly payments for home buyers reached an all-time high of $2,775 in the four weeks ended April 14th, according to Redfin. Although it would be expected that such barriers to entry would weaken demand and dig into home prices, limited inventory will only allow so much downward price pressure. It will take more time for the market to find its equilibrium once again.

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