The 1.4% year-over-year price increase came even as sales of existing homes fell 3.6% from February, a notable stumble heading into what is typically the market’s busiest season.
Even as politicians nationwide promise to build more homes to lower prices, inventory hasn’t yet matched those promises, and home prices remain elevated.
“Inventory remains a major constraint on the market,” NAR chief economist Lawrence Yun said in a statement. “The inventory-to-sales ratio, or supply-to-demand ratio, is below historical norms. An additional 300,000 to 500,000 homes for sale would help bring the market closer to normal conditions.”
On the flip side, homeowners are benefiting from this market: Yun noted that “the typical homeowner has accumulated $128,100 in housing wealth over the past six years.”
In contrast, Yun said lower consumer confidence and softer job growth have sidelined buyers. “March home sales remained sluggish and below last year’s pace,” he said.
“The threat of higher-for-longer oil prices continued to keep Treasury yields elevated, and mortgage rates finished last week higher,” Joel Kan, the Mortgage Bankers Association’s vice president and deputy chief economist, said in a statement.
