-National Association of Realtors
Sales of previously-owned homes recovered more than expected in March after plunging in February, indicating the housing market recovery remained intact despite signs of economic slowdown in the first quarter. According to the National Association of Realtors, existing home sales soared 5.1% to an annual rate of 5.33 million units last month. Economists had expected sales increasing 3.5% to a 5.30 million-unit pace in March. February's sales pace was revised slightly down to 5.07 million units from the previously reported 5.08 million units. March sales were up 1.5% from a year ago.
The housing sales numbers have been quite volatile in the first quarter of 2016. March's rebound comes after a sturdy start to the year in January, when sales reached their fastest pace in six months, followed by a decline in February. The US housing is being supported by a buoyant labour market, which has led to an acceleration in household formation. Nevertheless, sales remain constrained by a dearth of homes available for sale, which is limiting choices for buyers. At March's sales pace, it would take 4.5 months to clear the stock of houses on the market, up from 4.4 months in February. A six-month supply is considered as a healthy balance between supply and demand. The median house price increased 5.7% from a year ago to $222,700 last month.
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