First-time buyers now a majority due to incentives, trade group says
Resales of existing homes and condos fell 3% in March to a seasonally adjusted annual rate of 4.57 million, with distressed sales now accounting for half of all sales, a trade group reported Thursday.
Sales are down 7.1% in the past year, the National Association of Realtors said in its monthly sales report.
First-time buyers accounted for more than half of buyers in March, the group said. First-time buyers can get thousands in subsidies from the federal and state governments.
Sales were weaker than the 4.63 million pace expected by economists surveyed by MarketWatch. February's sales pace was revised lower to 4.71 million from 4.72 million.
Median sales prices have fallen 12.4% in the past year, the group said. Distressed sales typically go for 20% less, the real estate trade group said.
The "worst may be over" in parts of the West, said Lawrence Yun, chief economist for the NAR. Sales have doubled in the past year in areas such as Riverside, Calif., San Diego, Calif., and Las Vegas, Nev. Those areas were at the heart of the housing bubble and subsequent collapse. Foreclosures and short-sales have driven prices much lower
The inventory of unsold homes fell 1.6% to 3.74 million, representing a 9.8-month supply, up slightly from 9.7 months in February. Inventories are not seasonally adjusted.
In March, sales fell 8% in the Northeast, fell 1.7% in the South, fell 4.2% in the West and were unchanged in the Midwest.
Sales of single-family homes dropped 2.8% in March to a seasonally adjusted annual rate of 4.1 million. Sales of condos fell 4.1% to a 470,000 pace.
