According to the National Association of Realtors, sales of existing homes fell 2.7% to an annualized, seasonally adjusted rate of 5.77million units in March. The February reading also saw a decrease in sales, dropping from 6.02 to 5.93 millions units.

Sales for March were 4.5% less than in the same period of 2021.

This reading takes into account closings. It means that the contracts were signed between January and February when mortgage rates started to rise, but not as sharply in March. Mortgage News Daily reported that the average fixed 30-year mortgage rate stood at 3.9% in February and rose slightly to 3.29% towards the end of January. The fixed 30-year rate is now at 5.35%.

The already expensive market was made more difficult by higher interest rates. In March, the median home price was $375,000. This is a 15% increase over March 2021. It is the Realtors highest-ever recorded median price.

According to Realtor.com, with rates increasing and home prices rising significantly, average borrowers are paying 38% more per month now than they did one year ago.

The demand for millennials is driving up prices, and the supply of available homes continues to be low. There were 950,000 homes available at the end March, which is 9.5% less than last year. That’s a 2-month supply at current sales rates.

Homes for sale are most scarce at the lower end of market. Sales tend to be higher at this end.

Homes priced at between $100,000-$250,000 sold 21% more than last year, and sales for homes between $750,000-1 million rose 30%. Sales of homes priced over $1million saw an increase in 25%.

Lawrence Yun (chief economist at the National Association of Realtors) stated that “we know the builders have been underproducing ever since the foreclosure crisis.” But inventory has been rising for several months as mortgage rates rise.

Properties for sale move quickly, with an average of 17 days on the marketplace, which is down from 18 days last year. The cash is the key. The highest percentage of sales since July 2014 was 28%, and it accounted for 28% in March.

The latest weekly supply data for housing from Realtor.com indicates that there may be an increase in new listings and increased supply.

In a statement, Danielle Hale from Realtor.com said that buyers have some good news as it is the most popular time to sell a property. This, combined with moderate home sales, should result in more options available for home-searchers.