NAFCU's Long expects housing sales to recover gradually, unevenly

Curt Long

"After reversing a twelve-month streak of declining sales in February, existing home sales fell in March by 2.4 percent. Most buyers lock in rates a month prior to the purchase date, therefore, rising rates in February likely impacted March sales totals. A lack of inventory buoys prices in places that continue to see job growth, however prices are moderating in the most expensive locales around the US. The median sales price on a year over year basis continued to decline for a second month in March, after ending the longest streak of increases on record in February. While overall demand has been sensitive to rate changes, demand for starter homes remains extremely high, having a negative effect on median home price. While the average home was on the market in March for 29 days, the average home priced between $100-250K only remained on the market for 18 days and received multiple offers. As the Fed approaches the end of a monetary tightening cycle, expect housing sales to recover gradually and unevenly."

​- NAFCU Chief Economist Curt Long.

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