After a rebound in February, existing home sales slowed in March, falling 3.6% according to the National Association of REALTORS® (NAR). At the same time, housing inventory improved, rising 3% from February to 1.36 million homes, which is 2.3% higher than this time last year.
What’s the bottom line?
Even with this increase, inventory is still tight compared to historical norms, which continues to put pressure on the market. According to NAR Chief Economist Lawrence Yun, limited supply has helped support home prices and that price growth has added significant value for homeowners over time.
In fact, Yun noted that the typical homeowner has gained about $128,100 in housing wealth over the past six years. Even modest appreciation can make a difference. For example, a $500,000 home gaining 3% in a year would add about $15,000 in value, highlighting how homeownership can build wealth over time.