The March existing sales report, released Wednesday by the National Association of Realtors, shows that home sales jumped by the most in four years. Bloomberg reports on how the sales figures position the U.S. residential real estate market on firm footing heading into its busiest time of the year.
Purchases increased 6.1% to a 5.19 million annualized rate, the highest level since September 2013. Homes were snapped up in 52 days on average, the fastest since July, and property values appreciated.
“It’s consistent with a bit of a spring rebound,” said Gennadiy Goldberg, a strategist at TD Securities LLC in New York. “You’ve had more job growth over the last year or so. A lot of those people who did find employment would be driving some demand for housing.”
The share of first-time buyers inched up while distressed properties were a smaller part of the market, indicating a healthier mix in demand leading up to the May through July period when sales typically surge.
The gain in March was the biggest since December 2010. Figures from the Mortgage Bankers Association on Wednesday showed stronger demand is extending into April. The group’s index of purchase applications climbed last week to the highest level since June 2013.
The median price of an existing home surged 7.8 percent from a year ago, the most since February 2014, to $212,100.
