US homes sales dropped last month as prices reach record March high

Sales of previously owned homes in the United States fell in March as home prices climbed and mortgage rates held steady that month, reflecting the persistent pain of America’s affordability woes.

Existing home sales, which make up the majority of the housing market, fell 4.3% in March to a seasonally adjusted annual rate of 4.19 million, the National Association of Realtors reported Thursday. Sales fell across the country except in the Northeast region, which saw an increase for the first time since November 2023.

Meanwhile, the median price of an existing home was $393,500 last month, an increase of 4.8% from a year earlier. That was the highest March price on record. Rising home prices coupled with mortgage rates being stuck at elevated levels means Americans are still dealing with a tough housing market.

Home sales are up from the decades-lows seen last fall, but they might not rise meaningfully higher as the Federal Reserve signals that it won’t cut interest rates anytime soon.

“Though rebounding from cyclical lows, home sales are stuck because interest rates have not made any major moves,” NAR chief economist Lawrence Yun said in a release. “There are nearly six million more jobs now compared to pre-Covid highs, which suggests more aspiring homebuyers exist in the market.”

This story is developing and will be updated.

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