Following February's 3.9% drop, March existing home sales roared back (up 4.4% MoM - the fastest growth since Dec 2015) to the highest since Feb 2007 at 5.71 million SAAR. Inventories tumbled (for the 22nd month in a row) and prices rose (for the 61st month in a row) as affordability issues remain ignored (for now).
It seems, unlike 2013, that rising rates are not affecting demand for existing homes at all... (yet)
The median existing-home price for all housing types in March was $236,400, up 6.8 percent from March 2016 ($221,400). March's price increase marks the 61st consecutive month of year-over-year gains.
With the high-end dominating the price appreciation...
Inventory of available properties fell 6.6 percent from March 2016 to 1.83 million, marking the 22nd straight year-over-year decline.
“This is a very broad-based recovery” in the housing market, Lawrence Yun, NAR’s chief economist, said at a press briefing accompanying the report.
“Both sales as well as prices are running very solidly,” and “buyers are not being deterred by these affordability challenges.”
Policy changes could “quickly change” the direction of housing in the second half, he said.