WASHINGTON–Existing home sales showed a strong rebound during March, which is good news for sellers but daunting news for first-time homebuyers and Millennials.
New data also show a number of U.S. markets have hit all-time highs when it comes to the median home prices on home sales.
According to The National Association of Realtors, sales rose 5.1% to a 5.33 million seasonally adjusted annual rate. All four geographic regions of the country saw gains in March, including a substantial increase of 11.1% in the Northeast to 1.8% in the West.
The median price rose 5.7% from a year ago, to $222,700. That growth rate is more than double the average wage gain, according to NAR. Other government data show average wages are not coming close to maintaining pace with the appreciation in home prices.
According to the NAR:
- Homes stayed on the market for only 47 days, down from 52 days a year ago.
- The strong sales are driven in part by low inventory levels. The months’ supply dropped to 4.5 months, which will keep housing prices high and add to this sellers’ market.
Meanwhile, according to RealtyTrac, Americans who sold homes saw the highest price gains since December 2007. On average, homeowners sold for $30,500 more than their purchase price, an average 17% price gain.
Also in March, RealtyTrac reported that seven U.S. markets have hit a new high for median price on homes sold:
In March, seven markets touched new highs:
- Boulder, Colo: $451,250
- Denver: $325,200
- Portland, Ore: $300,000
- Ft. Collins, Colo.: $295,000
- Austin, Texas: $292,500
- Greeley, Colo.: $257,500
- Cincinnati: $147,700