Sales of previously owned homes fell 1.9% in April from March to 4.14 million units, on a seasonally adjusted annual basis, according to the National Association of Realtors. Expectations were for slight gains.
Sales have also declined since April 2023, down 1.9% from a year ago.
These sales are dependent on closings, so contracts will likely be signed in February and March. Mortgage rates jumped at the beginning of February and then stabilized at about 7% over the next two months before rising further in April.
“When we see these mortgage rates, which are a 300 basis point increase from the pre-Covid pace, we are entering new territory in terms of how the lock-in effect will restrict home sales,” said Lawrence Yun, chief economist at the Realtors Association. .
Total housing inventory at the end of April was 1.21 million units, up 9% month-over-month and up 16% from a year earlier, but still just a 3.5-month supply at the current sales pace. The six-month offer is considered balanced between the buyer and the seller. 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 priced under $100,000 fell 7.1% year over year, while sales of homes priced above $1 million jumped 40%.
The shortage in supply kept prices under pressure. The median price of an existing home sold in April was $407,600, an increase of 5.7% year over year. This is another record price for April. With multiple offers, and due to strong demand, 27% of homes sold for above list price.
“Home prices reaching a record high in April is very good news for homeowners,” Yoon said. “However, the pace of price increases should taper as more housing inventory becomes available.”
First-time buyers made a slight return, making up 33% of April sales, compared to 29% a year earlier. The all-cash share was still relatively high, at 28% of all transactions.
Regionally, sales in the Northeast were down 4% compared to March and 4% compared to April 2023. The median price in the Northeast was $458,500, up 8.5% year over year.
In the Midwest, sales were down 1% month over month, and also down 1% year over year. The median price in the Midwest was $303,600, up 6% from April 2023.
Sales in the South fell 1.6% from March and 3.1% from a year earlier. The median price in the South was $366,200, up 3.7% from last year.
In the West, sales fell 2.6% during the month and rose 1.3% from a year earlier. The median price in the West was $629,600, up 9.3% from April 2023.
Correction: The supply of homes priced over $1 million increased 34% year over year. An earlier version got the percentage wrong.
