While the total number of units selling is down slightly (due to limited inventory), the median home price set a new all time record for a March reading. According to the National Association of Realtors Existing Home Sales report, the median price for a home moved upward to $259,400 which is up from March 2018 ($249,800). March’s price increase marks the 85th straight month of year-over-year gains.
Total housing inventory at the end of March increased to 1.68 million units, up from 1.63 million existing homes available for sale in February and a 2.4% increase from 1.64 million a year ago. Unsold inventory is at a 3.9-month supply at the current sales pace, up from 3.6 months in February and up from 3.6 months in March 2018.
“Further increases in inventory are highly desirable to keep home prices in check,” says Lawrence Yun, NAR’s Chief Economist. “The sustained steady gains in home sales can occur when home price appreciation grows at roughly the same pace as wage growth.”
Properties remained on the market for an average of 36 days in March, down from 44 days in February but up from 30 days a year ago. Forty-seven percent of homes sold in March were on the market for less than a month.
First-time buyers were responsible for 33% of sales in March, up from last month and a year ago (32% and 30%). All-cash sales accounted for 21% of transactions in March, down from February’s 23%, but up from a year ago (20%). Individual investors, who account for many cash sales, purchased 18% of homes in March, up from February’s 16%, and up from a year ago (16%).
Distressed sales – foreclosures and short sales – represented 3% of sales in March, down from 4% last month and down from 4% in March 2018. One percent of March 2019 sales were short sales.