Although existing home sales increased in March to an annualized pace of 4.9 million units, a modest increase of 3.7%, the increase wasn't able to make up for the drop of 8.9% in February. Sales are still below the pace of January.
The increased paced helped decrease the months supply of inventory to 8.4 months from 8.5 months. A high inventory like this is often associated with decreasing home prices. Indeed, the year-over-year median home price moved down 5.9%.