Investing.com – U.S. existing home sales rose more than expected in March, bolstering optimism over the health of the housing market, according to a report released on Friday by the National Association of Realtors (NAR).
The industry data showed that home resales increased by 4.4% in March to a seasonally adjusted 5.71 million units from 5.47 million units in the previous month. February’s data was revised slightly lower from an initial reading of 5.48 million units.
The consensus forecast was for a 2.5% rise from February’s initial reading to 5.60 million units.
The data helps to gauge the strength of the U.S. housing market and is considered to be a key indicator of overall economic strength.
The report also showed that the median existing-home price in March was $236,400, up 6.8% from March 2016 ($221,400).
The report indicated that the existing-home sales took off in March to “their highest pace in over 10 years, and severe supply shortages resulted in the typical home coming off the market significantly faster than in February and a year ago.”
“The early returns so far this spring buying season look very promising as a rising number of households dipped their toes into the market and were successfully able to close on a home last month," NAR chief economist Lawrence Yun said.
"Although finding available properties to buy continues to be a strenuous task for many buyers, there was enough of a monthly increase in listings in March for sales to muster a strong gain,” he remarked, adding that “sales will go up as long as inventory does."
After the report, EUR/USD was trading at 1.0687 from around 1.0701 ahead of the release of the data, GBP/USD was at 1.2793 from 1.2797 earlier, while USD/JPY traded at 109. compared to 109.11 before the release.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 99.89, compared to 99.82 ahead of the report.
Meanwhile, U.S. stocks were trading slightly lower after the open. The Dow 30 slipped 13 points or 0.06%, the S&P 500 lost 2 points, or 0.11%, while the tech-heavy Nasdaq Composite edged down 4 points or 0.07%.
Elsewhere, in the commodities market, gold futures traded at $1,284.50 a troy ounce, compared to $1,283.50 ahead of the data, while U.S. crude oil changed hands at $50.46, compared to $50.52 earlier.