WASHINGTON: U.S. home sales fell more than expected in March, pointing to continued weakness in the housing market despite declining mortgage rates and slowing house price gains.
Falling mortgage rates, strengthening wage growth and slowing house price inflation have improved affordability, but housing supply remains tight, especially at the lower end of the market as land and labor shortages are making it difficult for builders to ramp up construction in this market segment.
A survey last week showed that while builders reported strong demand for new homes in April, they also complained about"affordability concerns stemming from a chronic shortage of construction workers and buildable lots."Last month, existing home sales fell in all four regions. There were 1.68 million previously owned homes on the market in March, up from 1.63 million in February. At March's sales pace, it would take 3.9 months to exhaust the current inventory, up from 3.