The typical home sold in March was on the market for just 18 days, according to the National Association of Realtors’ most recent existing-home sales report. That’s down from 29 days last year at the same time. It’s also a record low. Lawrence Yun, NAR’s chief economist, says buyers remain active despite the market’s fast pace this spring. “Consumers are facing much higher home prices, rising mortgage rates, and falling affordability, however, buyers are still actively in the market,” Yun said. “The sales for March would have been measurably higher, had there been more inventory. Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising.” There are several reasons home buyers remain active in the market, despite those challenges. Among them, an improved job market, still favorable mortgage rates, and the coronavirus vaccine lead the list. Buyers feel more optimistic about the economy and the pandemic and it’s leading to strong demand for homes. If new home construction can keep up with demand and help hold home-price increases down, sales will only move higher as we head into summer.
