U.S. March Existing Home Sales - February bounce more than fully earsed
March existing home sales with a 5.9% fall to 4.02m are the weakest since September and contrast a strong month from new home sales, leaving the overall housing picture unclear. The data does follow weakness in recent pending home sales data and other survey evidence.
The fall follows a surprising increase of 4.4% in February. February data was also significantly above trend in both 2023 and 2024 and there may be an issue with the seasonal adjustments.
Looking ahead the upside for housing looks limited, with significant Fed easing only likely in a weak economy, suggesting either Fed policy or the overall state of the economy will act as a restraint on demand.
Sales fell in all regions with the steepest fall in the West, which led the February increase. The median price rose by 1.7% on the month but this is seasonal. Yr/yr growth fell 2.7%, the weakest since August, from 3.4%.
