Across the United States, both the hot & cold housing markets have been thrown into a single bucket. The sales for “existing homes” that belonged to townhouses, single-families, co-ops, as well as condos, dropped down by a mark of 5.4 percent in March as compared to last year. This was significantly low to the seasonally adjusted real-estate annual rate for 5.21 million properties, as confirmed by the National Association of Realtors. The market showcased an ever-decreasing trend that reduced 2.3 percent in February, followed by 8.7 percent decrease in January, a whopping 10.1 percent mark in December, as well as 8.9 percent in November.
According to the NAR report, the impact of lower mortgage prices has not been realized completely as of now. This is given the fact that the mortgage rates have fallen sharply from the highs experienced in the month of November. Yet there is a significant drop in the sales volume. As confirmed by the report provided by Freddie Mac, the average rate for commitment for the 30-year conventional or fixed-rate mortgage has now decreased to a mark of 4.27 percent in the month of March as opposed to 4.37 percent noted in the month of February.
The average 30-year fix rate from Freddie Mac bottomed out during the March end reporting at 4.08 percent. This was the lowest from January 2018 and was down from the mark of 4.94 percent in the month of November. However, it has managed to rise every week. For the week ending on 18th April, the graph ticked up but it was still low as compared to the average at 4.17 percent.
It looks as if all that has been accomplished by the lower mortgage rates is a reduction in the decline for sales volume. Even with a spike in the month of February, which might have been fluke, the graph was still 2.8 percent below on February 2018. In the month of March, the 5.21 Million homes SAAR or the Seasonally Adjusted Annual rate sales jumped back up to their previous mark set on March 2015.
Inventory for the sale organized at end of the March month was high by 2.4 percent to 1.69 Million properties. With the current sale statistics, this actually represents a supply of 3.9 months. In simpler words, the supply is in abundance now but the decreasing sales volumes state that the type of supply is actually wrong with the prices going too high at time for buyers.