fbpx
Stylish and compact, these new Canon instant printers make creative pursuits easyRead more Nigerian Law Enforcement agencies open investigations on Hawilti and company executives for criminal breach of trust, cheating, defrauding investors schemeRead more Famine looms in Somalia, but many ‘hunger hotspots’ are in deep troubleRead more Launch of the 3rd Edition of the Choiseul Africa Business Forum, a Must-Attend Event for the Business Community in Africa October 19th & 20th, 2022 in Casablanca, MoroccoRead more World’s Biggest Afrobeats Music Festival Afro Nation Extends Partnership with APO Group until 2025Read more Master Trainer (MT) National Meeting on Sustainable Coffee Practices Organized by The International Islamic Trade Finance Corporation in Collaboration with The Sustainable Coffee Platform of Indonesia (SCOPI)Read more Thai Ambassador met the Thai Community in Dar es Salaam and Zanzibar and visited the Buddhist Temple in TanzaniaRead more Generation Africa awards US$100,000 to two young agripreneurs from Kenya and Uganda in the fourth annual GoGettaz Agripreneur Prize Competition at the African Green Revolution Forum Summit in Kigali, RwandaRead more Medicaid Cancer Foundation and AstraZeneca celebrate Prostate Cancer Awareness month with the launch of Project Icon NigeriaRead more Eight Tokyo International Conference on African Development (TICAD8): President Barrow Discusses Inclusive Development in The Gambia with United Nations Development Programme (UNDP) Assistant AdministratorRead more

Higher prices cooled US housing market in March

show caption
Sales of existing US homes fell in March, allowing the inventory of properties for sale to recover./AFP
Print Friendly and PDF

Apr 21, 2022 - 07:23 AM

WASHINGTON — Sales of existing US homes dropped for the second straight month in March, an industry survey said Wednesday, a sign that higher mortgage rates and rising prices are taking the wind out of the booming sector’s sails.

Sales fell 2.7 percent last month to a seasonally adjusted annualized rate of 5.77 million, which was 4.5 percent lower than in the same month last year, the National Association of Realtors (NAR) reported.

Home prices rose nationwide, and the median price increased to $375,300, a 15 percent jump compared to March 2021, according to the survey.

The drop in sales pushed supply up to two months at the current sales pace, 11.8 percent higher than in February.

NAR Chief Economist Lawrence Yun pointed to the impact of tighter lending conditions and increasing prices across the economy.

“The housing market is starting to feel the impact of sharply rising mortgage rates and higher inflation taking a hit on purchasing power,” he said. “Still, homes are selling rapidly, and home price gains remain in the double-digits.”

Sales fell in all regions with the exception of the West, where they were flat. The Midwest saw the biggest decline of 4.5 percent, while in the South they dipped three percent, about the same as the drop in the Northeast.

The Federal Reserve is moving to hike interest rates this year to curb record US inflation, which will have effects across the economy.

Mortgage rates have climbed above five percent and Yun predicted they would rise further, causing existing home purchases to fall 10 percent this year.

Lydia Boussour of Oxford Economics agreed that low supply and high prices would put downward pressure on sales, though she said they would only fall so far.

“Resilient demand and strong income gains should keep a floor under home sales, however, particularly if home price growth moderates,” she said.

MAORANDCITIES.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.