The National Association of Relators reported today that existing home sales in March jumped to their highest level in 18 months and increased 6.1 percent, boosted by low interest rates and growing stability in the job market.
Total existing home sales, which include single family homes, condos, townhomes, and co-ops increased 6.1 percent to 5.19 million in March, up from 4.89 million in February, marking the highest annual rate since September 2013.
For the past 6 consecutive months, sales have increased year over year and are now 10.4 percent above a year ago, the highest increase since August 2013.
March’s increase of 6.2 percent was the largest monthly increase since December 2010.
Interest rates still remain low and provide an incentive for homebuyers to make home purchases.
According to Freddie Mac, the average commitment rate for a conventional 30 year mortgage in March was 3.77 percent, a slight increase from 3.71 percent in February.
“The combination of low interest rates and the ongoing stability in the job market is improving buyer confidence and finally releasing some of the sizable pent-up demand that accumulated in recent years” said Lawrence Yun, chief economist with the National Association of Relators.
The median existing home price for all housing types in March was 212,000, an increase of 7.8 percent from March 2014.
The Midwest led all of the regions in the United States with the strongest sales gains in March.