House It Goin’
For the month of March, home resales crept downwards which means a slowdown in the housing market and overall economic activity as well. According to the National Association of Realtors, existing home sales fell 0.6 percent last month to a seasonally adjusted annual rate of 4.92 million units. This was disappointing, as economists polled by Rutgers had expected home sales to increase to 5.1 million units. Plus, insight from Millan Mulraine, a senior economist at TD Securities in New York included “The disappointing pace of home sales provides some evidence that positive momentum in the housing sector is beginning to leak lower,”. However, the slight decrease in the housing market could possibly just represent supply constraints or not enough houses to go around instead of lack of demand, of course lack of supply being preferred.
Sales in March were 10.3 percent higher than the same month compared to last year in 2012, and the median price for a home resale was up 11.8 percent, the biggest increase since November 2005, to $184,300. Ms. Mulraine also remarks ‘The report suggests that the overall thrust of the sector remains positive, with the demand and supply dynamics continuing to favor further price gains,”.
Written by Kevin Zhang