Nationally, existing home sales jumped 14.5% month-over-month as of last measure, the first monthly gain in 12 months, and representing the largest monthly increase since July 2020, according to the National Association of REALTORS® (NAR). The sudden uptick in sales activity stems from contracts signed toward the beginning of the year, when mortgage rates dipped to the low 6% range, causing a surge in homebuyer activity. Pending sales have continued to improve heading into spring, increasing for the third consecutive month, according to NAR.
New Listings decreased 40.9 percent for Single Family homes and 46.2 percent for Condominium homes. Pending Sales decreased 29.8 percent for Single Family homes and 49.7 percent for Condominium homes. Inventory increased 15.3 percent for Single Family homes and 28.6 percent for Condominium homes.
Median Sales Price increased 1.9 percent to $1,200,000 for Single Family homes but decreased 1.5 percent to $797,500 for Condominium homes. Days on Market increased 34.3 percent for Single Family homes and 92.8 percent for Condominium homes. Months Supply of Inventory increased 77.3 percent for Single Family homes and 150.0 percent for Condominium homes.
Monthly sales might have been even higher if not for limited inventory nationwide. At the current sales pace, there were just 2.6 months’ supply of existing homes at the beginning of March, far below the 4 – 6 months’ supply of a balanced market. Inventory remains suppressed in part because of mortgage interest rates, which nearly hit 7% before falling again in recent weeks. Higher rates have continued to put downward pressure on sales prices, and for the first time in more than a decade, national home prices were lower year-over-year, according to NAR, breaking a 131-month streak of annual price increases.
All data from the REALTORS® Association of Maui, Inc. Report © 2023 ShowingTime.
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