Resales Decline

Existing-home sales fell 5.6% in March to a more sustainable level as the best-ever three-month period for resales came to an end.The National Association of Realtors reported that sales of existing single family homes fell from a seasonally adjusted annual rate of 5.86 million in February to 5.53 million in March. NAR chief economist David Lereah noted that the 5.8 million sales pace million for the first quarter was a record, even with the downdraft of a weak economy, bad weather, and war with Iraq. "But it is clear, despite record lows in mortgage rates, the housing markets are cooling," he said. "We have dropped a notch." Nevertheless, the NAR economist is predicting that resales will end the year at 5.5 million and that 2003 will be the second-best year on record. The NAR report shows that the sale of existing homes fell in all four regions of the country. The inventory of unsold homes rose from 4.3 months in February to 5.0 months in March. And the median existing-home price rose 6.5% over the past 12 months.