U.S. home resales rebounded more than expected in March as
supply improved, suggesting the housing market recovery remained intact despite
signs that economic growth probably stalled in the first quarter.
The sales surge at the start of the spring selling season was a
sign of confidence in the economy, and the momentum is expected to be sustained
given low mortgage rates, recent stock market gains and a firming labor market,
analysts said.
"There cannot be too much wrong with the economy if
consumers keep buying new homes. It shows confidence," said Chris Rupkey,
chief economist at MUFG Union Bank in New York.
The National Association of Realtors said on Wednesday that
existing home sales surged 5.1 percent to an annual rate of 5.33 million units
last month, beating economists' expectations for a 3.5 percent increase. Sales
were up 1.5 percent from a year ago.
Existing home sales rose in all four regions in March, jumping
by 11.1 percent in the Northeast and 9.8 percent in the Midwest. Single-family
home sales vaulted 5.5 percent, while purchases of condominiums rose 1.8
percent.
Sales were concentrated in the middle part of the market, with
lack of inventory constraining transactions in the low-end segment.
"It points to a very strong start to the crucial spring
selling season, and initial anecdotal indications point to this positive
momentum being sustained in coming months," said Millan Mulraine, chief
economist at TD Securities in New York.
