Existing Home Sales Fall 3% in March

Washington, DC, April 23, 2009--Home and condo resales fell 3% in March to a seasonally adjusted annual rate of 4.57 million, with distressed sales now accounting for half of all sales, according to the National Association of Realtors.

Sales are down 7.1% in the past year, NAR said in its monthly sales report.

First-time buyers accounted for more than half of buyers in March, the group said. First-time buyers can get thousands in subsidies from the federal and state governments.

Sales were weaker than the 4.63 million pace expected by economists. February's sales pace was revised lower to 4.71 million from 4.72 million.

Median sales prices have fallen 12.4% in the past year, the group said.

The "worst may be over" in parts of the West, said Lawrence Yun, chief economist for the NAR. Sales have doubled in the past year in areas such as Riverside, Calif., San Diego, Calif., and Las Vegas, Nev. Those areas were at the heart of the housing bubble and subsequent collapse. Foreclosures and short-sales have driven prices much lower.

The inventory of unsold homes fell 1.6% to 3.74 million, representing a 9.8-month supply, up slightly from 9.7 months in February. Inventories are not seasonally adjusted.

In March, sales fell 8% in the Northeast, fell 1.7% in the South, fell 4.2% in the West and were unchanged in the Midwest.

Sales of single-family homes dropped 2.8% in March to a seasonally adjusted annual rate of 4.1 million. Sales of condos fell 4.1% to a 470,000 pace.