Existing-home sales receded in April, according to the National Association of REALTORS® (NAR) latest report, released May 22. All four major U.S. regions posted month-over-month declines. Year-over-year, sales decreased in the Northeast, Midwest and South but increased in the West.
Total existing-home sales—completed transactions that include single-family homes, townhomes, condominiums and co-ops—slid 1.9% from March to a seasonally adjusted annual rate of 4.14 million in April. Year-over-year, sales fell 1.9% (down from 4.22 million in April 2023).
“Home sales changed little overall, but the upper-end market is experiencing a sizable gain due to more supply coming onto the market,” said NAR Chief Economist Lawrence Yun.
Total housing inventory registered at the end of April was 1.21 million units, up 9% from March and 16.3% from one year ago (1.04 million). Unsold inventory sits at a 3.5-month supply at the current sales pace, up from 3.2 months in March and 3.0 months in April 2023. For homes priced $1 million or more, inventory and sales increased by 34% and 40%, respectively, from a year ago.
The median existing-home price for all housing types in April was $407,600, an increase of 5.7% from the previous year ($385,800). All four U.S. regions registered price gains.
“Home prices reaching a record high for the month of April is very good news for homeowners,” Yun added. “However, the pace of price increases should taper off since more housing inventory is becoming available.”
Bright MLS Chief Economist Lisa Sturtevant had this response to the report:
“More new listings have been coming onto the market, and that increased supply was expected to spur more homebuying activity this spring,” she said. “However, the long-awaited inventory gains are coming at the same time that mortgage rates at 7% and record high home prices are sidelining more and more buyers.
“The strongest segment of the housing market has been the upper-end and luxury market where buyers are less rate sensitive and are more likely to have equity to put toward a home purchase. The median home price in April was $407,600, up 5.7% compared to a year ago, which is the strongest annual price appreciation since October 2022. Buyers and sellers of higher-end homes helped to push the median sold price up.
“For the rest of the spring and into the summer, repeat buyers will be taking advantage of more inventory, but more moderate-income and first-time buyers are going to be more likely to wait for rates to come down.”
And this from Realtor.com Chief Economist Danielle Hale: “As inflation improves and mortgage rates drift lower, as is widely expected, home purchasers will benefit, but the improvement will be unevenly distributed for buyers of different incomes levels and in different markets.”
According to the monthly REALTORS® Confidence Index, properties typically remained on the market for 26 days in April, down from 33 days in March but up from 22 days in April 2023.
First-time buyers were responsible for 33% of sales in April, up from 32% in March and 29% in April 2023.
All-cash sales accounted for 28% of transactions in April, identical to March and one year ago.
Individual investors or second-home buyers, who make up many cash sales, purchased 16% of homes in April, up from 15% in March but down from 17% in April 2023.
Distressed sales, foreclosures and short sales, represented 2% of sales in April, virtually unchanged from last month and the prior year.
Single-family home sales decreased to a seasonally adjusted annual rate of 3.74 million in April, down 2.1% from 3.82 million in March and 1.3% from the prior year. The median existing single-family home price was $412,100 in April, up 5.6% from April 2023.
At a seasonally adjusted annual rate of 400,000 units in April, existing condominium and co-op sales were unchanged from last month and down 7% from one year ago (430,000 units). The median existing condo price was $365,300 in April, up 5.4% from the previous year ($346,700).
Regional Breakdown
Existing-home sales in the Northeast waned 4% from March to an annual rate of 480,000 in April, a decline of 4% from April 2023. The median price in the Northeast was $458,500, up 8.5% from the previous year.
In the Midwest, existing-home sales slipped 1% from one month ago to an annual rate of 1 million in April, down 1% from one year ago. The median price in the Midwest was $303,600, up 6% from April 2023.
Existing-home sales in the South decreased 1.6% from March to an annual rate of 1.9 million in April, down 3.1% from the prior year. The median price in the South was $366,200, up 3.7% from last year.
In the West, existing-home sales retracted 2.6% from a month ago to an annual rate of 760,000 in April, an increase of 1.3% from one year before. The median price in the West was $629,600, up 9.3% from April 2023.
