Resources
Chart of the day: U.S. home prices hit record in March
REAL ECONOMY BLOG | April 20, 2022
Authored by RSM US LLP
Sales of existing homes fell by 2.7% to 5.77 million in March, the lowest since July 2020, as rising mortgage rates dampened demand. The median home price, however, hit a record high at $375,300, pointing to persistent housing shortages, according to data the National Association of Realtors released on Wednesday.
Given the potential of multiple 50 basis-point rate hikes by the Federal Reserve starting this May and the Fed’s overall hawkish tone, demand for housing is expected to cool down further this year. In addition, increasing supplies of new houses in recent months have helped ease some of the demand for existing homes.
Looking at pending home sales—which typically become existing home sales within two months—we would not be surprised if existing home sales return to the pre-pandemic level of around 5.3 million annualized rate as the credit market is brought back to neutral.
In the meantime, buyers are trying to bypass rising rates with all-cash purchases. The share of all-cash buyers in March rose to 28%, up from 25% in February and the highest rate since 2014.
The share of first-time buyers remained steady at 30% as they looked to lock in current mortgage rates before they go higher.
As a result, homes are still selling fast compared to the industry’s long-term sustainable pace of around six months of supply. The current selling pace in March left inventory low at only two months.
Sales declined in three of the four major regions except for the West, where existing home sales were flat on the month.
Let's Talk!
Call us at (325) 677-6251 or fill out the form below and we'll contact you to discuss your specific situation.
This article was written by Tuan Nguyen and originally appeared on 2022-04-20.
2022 RSM US LLP. All rights reserved.
https://realeconomy.rsmus.com/chart-of-the-day-u-s-home-prices-hit-record-in-march-despite-decline-in-sales/
RSM US Alliance provides its members with access to resources of RSM US LLP. RSM US Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each is separate and independent from RSM US LLP. RSM US LLP is the U.S. member firm of RSM International, a global network of independent audit, tax, and consulting firms. Members of RSM US Alliance have access to RSM International resources through RSM US LLP but are not member firms of RSM International. Visit rsmus.com/about us for more information regarding RSM US LLP and RSM International. The RSM logo is used under license by RSM US LLP. RSM US Alliance products and services are proprietary to RSM US LLP.
Condley and Company, LLP is a proud member of the RSM US Alliance, a premier affiliation of independent accounting and consulting firms in the United States. RSM US Alliance provides our firm with access to resources of RSM US LLP, the leading provider of audit, tax and consulting services focused on the middle market. RSM US LLP is a licensed CPA firm and the U.S. member of RSM International, a global network of independent audit, tax and consulting firms with more than 43,000 people in over 120 countries.
Our membership in RSM US Alliance has elevated our capabilities in the marketplace, helping to differentiate our firm from the competition while allowing us to maintain our independence and entrepreneurial culture. We have access to a valuable peer network of like-sized firms as well as a broad range of tools, expertise and technical resources.
For more information on how Condley and Company can assist you, please call (325) 677-6251.