April 22, 2013, 12:00 p.m. EDT
Existing-home sales decline in March
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By Ruth Mantell,
MarketWatch
WASHINGTON (MarketWatch) — Existing-home sales declined in
March, according to data released Monday that signaled a pause in the market as
potential sellers were reluctant to put their homes on the market.
The National Association of Realtors said sales of existing homes fell
0.6% in March to a seasonally adjusted annual rate of 4.92 million. Low inventories of existing homes for sale are constraining activity, according to NAR. The supply of existing homes available for sale has remained under 2 million since October, and has decreased 17% over the past year. Inventories are expected to see a large gain in April as the buying season heats up. Read more on how home sellers are holding out for higher prices.
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Those
with student loans less likely to own homes
New data suggests that, in a switch, those with student debt now less likely to have homes, cars.
• U.S. weekly jobless claims edge higher
• Philadelphia manufacturers barely growing
• Economy to grow slowly in near term: LEI
• IMF’s Lagarde says ECB has more room to ease
• The apartment-building boom continues
New data suggests that, in a switch, those with student debt now less likely to have homes, cars.
• U.S. weekly jobless claims edge higher
• Philadelphia manufacturers barely growing
• Economy to grow slowly in near term: LEI
• IMF’s Lagarde says ECB has more room to ease
• The apartment-building boom continues
“Sales were a bit weaker than expected, although they are still up solidly over the past year,” wrote Jim O’Sullivan, chief U.S. economist with High Frequency Economics, in a research note.
Meanwhile, median prices hit $184,300 in March, up 11.8% from the same period in the prior year, the largest year-over-year price growth since November 2005. Low inventories are supporting prices, and the median price has benefited from less distressed home activity, NAR said.
Distressed homes made up 21% of sales in March — the
lowest share since data collection began in 2008. Foreclosures made up 13% of
sales, while short sales made up 8%.
Distressed homes made up 21% of sales in March — the lowest share since data
collection began in 2008 — down from 29% during the same period in the prior
year. 
Monday’s report is the latest data signaling a housing market that has grown substantially over the past year, supported by near-record-low interest rates and rising prices. However, headwinds remain from high unemployment and tight credit standards. For instance, higher standards are impacting young workers with student debt.
“First-time buyers are struggling to get into the market,” said Lawrence Yun, NAR’s chief economist.
Economists polled by MarketWatch had expected a pace of 5.03 million existing-home sales for March, compared with an original estimate of a 4.98 million rate in February. On Monday, NAR revised February’s rate to 4.95 million.
Regionally, the pace of existing-home sales fell 1.7% in the West and 1.5% in the South. The pace was unchanged in the Northeast. The sales rate rose 1.8% in the Midwest.
A recent reading on sentiment among home builders showed a decline in April, as the index hit the lowest level in six months, dragged down by concerns over present sales and buyer traffic. Despite builders’ concerns, the Department of Commerce recently reported that construction on new U.S. homes in March hit the highest rate in almost five years, led by apartments.
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