Existing-home sales fell 1.9% in April from March on a seasonally adjusted annualized basis to 4.14 million, according to the National Association of Realtors, beating expectations of a slight increase.
Sales also declined from April 2023, down 1.9% year-on-year.
These sales are based on closings, so contracts are likely to close in February and March. Mortgage rates spiked in early February, hovered around 7% for the next two months, and rose further in April.
“When you look at mortgage rates, which are up 300 basis points from their pre-pandemic pace, there’s a lot of talk about how lock-in effects could dampen home sales,” said Lawrence Yun, chief economist at Realtors. We are entering new territory.” .
The total housing inventory at the end of April was 1.21 million units, an increase of 9% from the previous month and 16% from the previous year, but at the current sales pace, this is only 3.5 months’ worth. It is considered that 6 months’ worth is a balance between buyers and sellers. However, the supply of homes priced over $1 million is up 34% year-over-year, which is why this segment of the market is the most active.
Sales of homes under $100,000 fell 7.1% from a year ago, but sales of homes over $1 million increased 40%.
Short supply pressured prices. The median price of existing homes sold in April was $407,600, an increase of 5.7% from a year ago. This is a record high price for April. Due to strong demand, there were multiple buyers and 27% of homes were sold for above list price.
“The fact that home prices hit a record high for April is very good news for homeowners,” Yun said. “However, the pace of price growth should slow as housing inventory increases.”
First-time buyers rebounded slightly, accounting for 33% of sales in April, up from 29% a year earlier. The all-cash proportion was still relatively high, at his 28% of all transactions.
By region, Northeast sales were down 4% from March and 4% from April 2023. The median price in the Northeast was $458,500, up 8.5% from a year ago.
In the Midwest, sales were down 1% month-over-month and down 1% year-over-year. The median price in the Midwest was $303,600, up 6% from April 2023.
Sales in the southern region were down 1.6% from March and 3.1% from the previous year. The median price in the South was $366,200, up 3.7% from last year.
And in the West, sales fell 2.6% for the month, up 1.3% year-over-year. The median price in the West was $629,600, up 9.3% from April 2023.
Correction: The supply of homes priced at $1 million or more increased 34% year over year. Percentages were listed incorrectly in previous versions.
