Existing Home Sales: Strongest in 10 years

Bottom Line: The early read on the spring home buying season suggests continued strong activity. Both sales and inventory increased, though inventory remains historically low. That continued to put upward pressure on home prices with homes moving quickly -- the average property stayed on the market for just 34 days, down from 47 days a year ago, with the fastest markets being the San Jose and San Francisco Bay Areas, the Seattle area and the Denver area. Overall, the housing market trends remain strong. Existing Home Sales ROSE by 4.4% in March to 5.71 million, compared with market expectations for an increase to 5.55 million. The prior month was revised down from 5.48 to 5.47 million. Home re-sales are now 5.9% ABOVE their year ago level but are 21.2% BELOW their September 2005 record high.

• 42.5% of single family homes sold were priced in between 100k to 250k and 32.2% of single family homes sold were priced in between 250k to 500k.
• Single family home sales are up 4.9% year-over-year for prices in between 100k to 250k and are up 19.0% for prices in between 250 - 500k.

The Inventory of Homes Available for Sale ROSE by 5.8% to 1,830k but are still 6.6% BELOW their year ago level. The Months Supply, thus held steady at 3.8 months. This is still well BELOW its July 2010 cyclical peak of 12.4 (which was its highest level since 1982) and even BELOW the 6 month level that is considered 'normal'. Home Prices ROSE compared to their year ago levels. Average home prices are 5.3% ABOVE their year ago levels while median home prices are 6.8% ABOVE their year ago levels.