March Sales Signal Slowest Start to Spring Homebuying Since 2014
Kicking off the spring homebuying season, March sales climbed almost twenty-nine percent over February, according to the RE/MAX National Housing Report. But this remains the slowest start in five years, with March sales 8.6 percent lower than March 2018.
March was the eighth consecutive month of year-over-year sales declines and the sixth straight month of year-over-year inventory growth, with a 5.3 percent gain. Housing activity in the report’s 54 markets nationwide also saw the Median Sales price grow by 3.4 percent year-over-year – notably smaller than the year-over-year increases in February (5.5 percent) and January (4.6 percent). However, the median sales price has risen by more than 3% year-over-year in 17 of the last 18 months.
From 2015 to 2018, the housing market’s spring sprang to life with an increase in sales from February to March averaging 37.0 percent. March 2019’s month-over-month increase of 28.8 percent was the smallest since 24.6 percent in 2014. Days on Market increased to 59 from 57 last March, while Months Supply of Inventory declined year-over-year to 2.7 from 3.0.
“It was encouraging to see month-over-month sales improve during March,” said RE/MAX CEO Adam Contos. “Although the seasonal bounce that typically ends the first quarter wasn’t as strong as in the past few years, conditions are in place for a healthy spring selling season. Falling interest rates, rising inventory and moderating price increases against the backdrop of a healthy overall economy are cause for optimism for buyers and sellers alike.”
The average Days on Market for homes sold in March 2019 was fifty-nine, down three days from the average in February 2019, and up two days from the March 2018 average. Days on Market is the number of days between when a home is first listed in an MLS and a sales contract is signed. The number of homes for sale in March 2019 was up 0.3 percent from February 2019. Based on the rate of home sales in March 2019, the Months Supply of Inventory decreased to 2.7 from 3.7 in February 2019, and from 3.0 in March 2018. A six-months supply indicates a market balanced equally between buyers and sellers.
Click here to download your copy of the RE/MAX National Housing Report for March 2019. Looking to sell your Phoenix home or buy a home in Phoenix? Contact the Nate Martinez Team today! We offer unparalleled service to all clients in the Phoenix real estate market.
Nate Martinez, RE/MAX Professionals
Connect with us on YouTube
Connect with us on Facebook
Connect with us on Twitter
Connect with us on Instagram