Investing.com - Sales of previously-owned U.S. homes rose in March, according to figures released by the National Association of Realtors on Monday.
Existing home sales rose 1.1% in March from the previous month to an annualized pace of 5.60 million units.
Economists had forecasts a 0.2% increase to an annualized pace of 5.55 million.
Existing home sales account for 90% of the market and are calculated when a contract closes.
The report indicated that while existing-home sales grew for the second consecutive month in March, lagging inventory levels and affordability constraints kept sales activity below year ago levels.
"Robust gains last month in the Northeast and Midwest – a reversal from the weather-impacted declines seen in February – helped overall sales activity rise to its strongest pace since last November at 5.72 million," NAR chief economist Lawrence Yun commented.
"The unwelcoming news is that while the healthy economy is generating sustained interest in buying a home this spring, sales are lagging year ago levels because supply is woefully low and home prices keep climbing above what some would-be buyers can afford," he added.
The median existing-home price for all housing types in March was $250,400, up 5.8% from March 2017 ($236,600). Last month's price increase marks the 73rd straight month of year-over-year gains.
“Although the strong job market and recent tax cuts are boosting the incomes of many households, speedy price growth is squeezing overall affordability in several markets – especially those out West,” Yun concluded.