Even with new home sales rising thanks to builder incentives and a shift toward lower-priced homes, sky-high prices and economic instability continue to suppress overall housing market activity, according to a recent report in The Wall Street Journal, existing-home sales dropped by 5.9% in March compared to February, falling to an annual rate of 4.02 million units. This marks the sharpest monthly decline in over two years, and the slowest March sales pace since 2009. Despite a 19.8% increase in inventory from March of last year, buyers were deterred by high mortgage rates and a record-high median home price of $403,700. Economic concerns are also impacting transactions, leading to 13.4% of pending home sales being canceled in March.
According to a report from Redfin, those high prices, elevated mortgage rates, economic uncertainty, and higher supply of listings have compelled some sellers to offer concessions to buyers feeling the crunch. The report notes that 44.4% of U.S. home sales in the first quarter included some form of concession to the buyer. This is an increase from 2024, and is near the record high 45.1% observed at the beginning of 2023. Redfin notes that “Buyers are often seeking these concessions not just for minor issues like repairs, but primarily to help afford the home itself.”
Leave a Comment