According to the National Association of Manufacturers’ (NAM) Monday Economic Report for this week, existing home sales fell 2.7% from 5.93 million units in February to 5.77 million units in March, the slowest pace since June 2020, according to the National Association of Realtors. Supply chain challenges, lack of inventory, higher mortgage rates and affordability are the main concerns for the existing home sales market. In March, single-family sales decreased 2.7% from 5.27 million units to 5.13 million units, and condominium and co-op sales fell 3.0% from 660,000 units to 640,000 units. On a year-over-year basis, existing home sales fell 4.5% from 6.04 million units in March 2021.
The Housing Market Index declined from 79 in March to 77 in April, a seven-month low, according to the National Association of Home Builders and Wells Fargo. The index for current single-family homes decreased from 87 to 85, and the index for potential buyer traffic dropped from 66 to 60. At the same time, the index for expected single-family sales bounced back from 70, the lowest reading since June 2020, to 73. Indexes above 50 correlate with a more positive market assessment from builders.