-Joel Naroff, president of Naroff Economic Advisors
Sales of previously owned homes surged to the highest level in 18 months last month, as more homes came to the market, a sign the housing market is regaining momentum after a tepid beginning to the year. If such a fast pace of sales growth is maintained, 2015 would become the best year for existing home sales in almost a decade. Yet lacklustre retail sales and soft factory data indicated the growth rebound are likely to be insufficient to convince the Fed to hike interest rates in June.
Existing-home sales soared 6.1% last month from February to a seasonally adjusted annual rate of 5.19 million, according to the National Association of Realtors. That was the highest level since September 2013. Measured on an annual basis, March sales jumped 10.4%. The increase in March sales follows two sluggish months amid cold winter weather. The February sales pace was 4.89 million, while in January it was 4.82 million. However, the latest data suggest the combination of low mortgage rates, steady job creation as well as pent-up demand could result in full-year sales reaching prerecession levels. The median sale price for a previously owned home soared 7.8% from the previous year to $212,100 in March, NAR said. Sales of existing homes make up around 90% of all home purchases in the US.
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