Tight supply keeps home prices at record highs despite falling demand

Buyers may gain more negotiating power as demand for existing homes falls. U.S. home sales fell 3.6% in March, the lowest for that month since 2009. The National Association of Realtors reported that lower consumer confidence and softer job growth are holding buyers back. Despite the slowing sales, the supply of homes remains tight. The median U.S. existing-home price is now $408,800, a 1.4% increase from one year ago and a record high for the month of March. Buyers gain more negotiating power.