Sales of existing US homes declined in March, having risen sharply in the previous month, partly offset by the strong weakening of the most expensive real estate.
The National Association of Realtors announced on Monday that house sales were down 4.9% to a seasonally adjusted annual rate of 5.21 million from 5.48 million in February. The decline followed an increase of 11.2% in the previous month, the largest in more than three years.
Home Sales Difficult to Recover After Falling Into the Second Half of Last Year A rise in mortgage rates to nearly 5% discouraged many potential buyers. So far, spring sales have fallen short of the healthy profits of last year: sales were 5.4% below the previous year's level.
Most analysts expect sales to recover in the coming months. Borrowing costs have fallen to an average of 4.2% since a fixed 30-year mortgage. And permanent employment forces employers to pay higher wages, making it easier for more Americans to afford a home purchase.
Home mortgage loan applications have been running at a healthy pace in recent months, suggesting that final sales should rise in the coming months. Demand remains strong and homes in the market averaged 36 days in March and 44 in February.
"We are looking for a combination of strong demand and lower mortgage rates to achieve moderate sales growth in the US "The Year," said Nancy Vanden Houten, senior US economist at Oxford Economics.
Nonetheless, the market has split, in part due to the Trump government's tax cut law slightly priced at mid-priced homes, but dropped at least $ 1
According to Lawrence Yun, NAR's chief economist, the tax changes allowed wealthier homeowners to reduce mortgage rates on property taxes more expensive homes.
In recent years, developers have built more expensive homes while differing from g homes, even if middle-income Americans have a buying interest.
"The lower market is hot In the upper price segment, this is not the case," said Yun.
Real estate valued at more than $ 100,000 (mostly condos) also saw a sharp drop in sales, but this reflects the shortage The slowdown in higher-priced houses is due to weaker demand.
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Revenues went up in all four major US regions With the largest decline in the Midwest, this may have partly reflected the impact of massive flooding in Iowa, Missouri and Nebraska over the past month.
The broader US economy looks much better now than it did before several months after the government closed down, the retail trade slowed and slowed. Global growth threatened the US to slow the economy down.
Earlier this year, economists forecast that growth would fall to 0.5% in the first three months of the year. Analysts expect the government to report growth of up to 2.8% on Friday.