"Inventories are still very tight"
- Gus Faucher, senior economist at PNC Financial Services Group Inc.
The number of sales of previously owned homes in the world's largest economy unexpectedly tumbled in March, underlining uneven progress in the sector. Purchases of existing homes edged down 0.6% last month to a seasonally adjusted annual rate of 4.92 million units, down from 4.95 million in the preceding month, the National Association of Realtors showed Monday. Analysts, however, expected a reading of 5.02 million. The U.S. housing market was mended by the historically low mortgage rates, constantly rising property values and some gains in the labour market, however a drop in the inventory of cheaper properties for sale may be restraining the pace of progress in the industry.
"Inventories are still very tight," said Gus Faucher, senior economist at PNC Financial Services Group Inc. in Pittsburgh, who projected a 4.95 million pace. "As potential sellers respond to higher prices we will see inventories improve and sales go up."
"We're encouraged by the sustained improvement in housing sales, new home construction, rising housing prices, reduced inventories, historically low mortgage rates, and the best housing affordability in years, all of which combined to create a positive environment for our company and our industry," said Paul Toms, chief executive officer at Martinsville, furniture maker Hooker Furniture Corp.
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