US home sales tumble, as supply crunch lingers

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US home sales tumble, as supply crunch lingers

On Monday, the 22nd of April 2019, the National Association of Realtors (NAR), had revealed a report saying that the US home sales had tumbled more than anticipated in March amid a supply deficit fueled up by declining mortgage rates, in particular in the lower-priced segment of the market.

Monday’s (April 22nd) report could spread worries following a strong spring selling season, as US existing home sales fell to a seasonally adjusted 5.21 million from previous 5.48 million in March, while on a month-on-month basis, the existing home sales had plunged severely from a previous figure of 11.2 percent to -4.9 percent.

The report came forth a day after a separate report had revealed that the US housebuilding had dwindled nearly to a two-year low despite declined mortgage rate amid higher price of construction materials, a scenario which closely coincided with rising homebuilding costs all over the world including Germany, which had been experiencing a rise of apartment building cost to 7.5 percent higher over the first quarter of 2019 alongside China.

Blaming supply deficit behind the lack of existing home sales in United States, a corporate economist at Navy Federal Credit Union in Vienna, Virginia, Robert Frick said, “Given mortgage rates have dropped and home prices aren’t appreciating as quickly, there is more opportunity for home shoppers, who are gearing up for the spring season. The major problem for home buyers is the low supply of homes, especially at the lower end of the market”.