US existing home sales drop in March; median price increases

U.S. existing home sales fell in March as higher interest rates and house prices sidelined buyers from the market.

Home sales dropped 4.3% last month to a seasonally adjusted annual rate of 4.19 million units, the National Association of Realtors said on Thursday. Economists polled by Reuters had forecast home resales slipping to a rate of 4.20 million units.

Sales fell in the densely populated South, the Midwest, which is considered the most affordable region, and the West. They rose in the Northeast for the first time since November. Home resales, which account for a large portion of U.S. housing sales, declined 3.7% on a year-on-year basis in March.

“Though rebounding from cyclical lows, home sales are stuck because interest rates have not made any major moves,” said Lawrence Yun, the NAR’s chief economist.


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