Investing.com - Sales of previously-owned U.S. homes fell more than expected in March, retreating after what had been its largest month-over-month gain in three years.
Existing home sales fell 4.9% in March from the previous month to an annualized pace of 5.21 million units, according to data from the National Association of Realtors released on Thursday.
Sales had surged 11.8% in February, its largest gain since December 2015 as it bounced off a three-year low.
“It is not surprising to see a retreat after a powerful surge in sales in the prior month,” Lawrence Yun, NAR’s chief economist, explained.
“Still, current sales activity is underperforming in relation to the strength in the jobs markets,” he noted, adding that the impact of lower mortgage rates has not yet been fully realized.
Total housing inventory at the end of March increased to 1.68 million, up from 1.63 million existing homes available for sale in February and a 2.4% increase from 1.64 million a year ago.
“We had been calling for additional inventory, so I am pleased to see that there has been a modest increase on that front,” NAR President John Smaby said. “We’re also seeing very favorable mortgage rates, so now would be a great time for those buyers who may have been waiting to make a purchase.”