Sales of existing homes nationwide were down 2.7% between February and March, according to the National Association of Realtors. Sales decreased 4.5%, and home showings fell 19% from the same time last year. According to the group's most recent data, pending home sales slipped by 4.1%, too.
As a result, mortgage rates have surpassed 5% for the first time in more than a decade, increasing the financial burden of buying a home and pushing some homebuyers to reconsider their plans, experts said. “Newly pending home sales this March lagged behind their pace from a year ago, with 19% fewer than in March 2021, after February notched a 15% year-over-year decline,” the company said. “The slowdown in sales volume could be attributable to the one-two punch of high prices and rising mortgage rates denting demand this spring.”
“For months, builders have kept their foot on the gas amid persistent supply shortages and rising prices, and March’s construction figures indicate that they’re still ready to push ahead,” Zillow added. Though data indicate preliminary signs of a cooldown, real estate statistics broke more records in March. Redfin said 54% of homes sold above asking price, “up 12 percentage points from a year earlier, and the highest March level on record.” Meanwhile, the median price of home sales was up 6.2% last month, “the fastest month-over-month gain at this time of year since 2013, to an all-time high of $412,700,” the company found.