This resulted in only 6.01 million units on a seasonally adjusted annualized rate. This marked the lowest sales since August and the second consecutive month of declines possibly signaling a trend. However, sales were still 12.3 percent higher than in March 2020.
Realtors have cited a depleted supply as a reason for the decrease. Demand has remained extremely high as consumers look to take advantage of historically low mortgage rates.
“If the demand was retreating, then we would see fewer multiple offers, but we know that multiple offers are widely prevalent in today’s market,” said Lawrence Yun, chief economist for the Realtors.
The supply of homes for sale fell 28.2 percent compared to a year ago. This has resulted in prices surging even higher. The median price of a home in March was $329,100, a 17.2 percent increase from March 2020 and the fastest pace of appreciation record.
“Perhaps the record stock market is providing the financial wherewithal to purchase these million-dollar homes,” said Yun. More luxurious homes remain plentiful on the market, but less expensive homes are dropping like flies.
“Although homes are far from plentiful, housing supply could be reaching a turning point thanks to a surge in new listings just as the housing market hits the best time of the year to sell a home,” said Danielle Hale, chief economist for realtor.com. “Also, builders are finding a way to build a growing number of new homes despite challenges.”