Existing-home sales slide in April

Existing-home sales cooled off in April and fell 2.7% to a seasonally adjusted annual rate of 5.85 million, the National Association of Realtors reported.

Total existing-home sales include completed transactions of single-family homes, townhomes, condos and co-ops. Sales overall jumped year-over-year, up 33.9% from a year ago (4.37 million in April 2020).

“Home sales were down again in April from the prior month, as housing supply continues to fall short of demand,” said Lawrence Yun, NAR’s chief economist. “We’ll see more inventory come to the market later this year as further COVID-19 vaccinations are administered and potential home sellers become more comfortable listing and showing their homes.”

Yun also noted that the falling number of homeowners in mortgage forbearance will also bring about more inventory.

Single-family home sales dropped to a seasonally-adjusted annual rate of 5.13 million in April, down 3.2% from 5.30 million in March, and up 28.9% from one year ago. 

The median existing single-family home price was $347,400 in April, up 20.3% from April 2020.

The median existing-home price for all housing types in April was $341,600, up 19.1% from April 2020 ($286,800), as every region recorded price increases. This is a record high and marks 110 straight months of year-over-year gains, the NAR said.

Total housing inventory at the end of April sat at 1.16 million units, up 10.5% from March’s inventory and down 20.5% from one year ago (1.46 million).

Unsold inventory sits at a 2.4-month supply at the current sales pace, slightly up from March’s 2.1-month supply and down from the 4-month supply recorded in April 2020. These numbers represent near-record lows, according to the NAR.

“Despite the decline, housing demand is still strong compared to one year ago, evidenced by home sales from this January to April, which are up 20% compared to 2020,” Yun said. “The additional supply projected for the market should cool down the torrid pace of price appreciation later in the year.”

Here’s how existing-home sales performed on a regional basis:

• Existing-home sales in the Northeast fell 3.9% from March, but the annual rate of 730,000 represents a 30.4% leap from a year ago. The median price in the Northeast was $381,100, up 22% from April 2020.
• Existing-home sales in the Midwest grew 0.8% to an annual rate of 1,290,000 in April, a 13.2% increase from a year ago. The median price in the Midwest was $259,300, a 13.5% rise from April 2020.
• Existing-home sales in the South decreased 3.7%, recording an annual rate of 2,600,000 in April, up 39% from the same time one year ago. The median price in the South was $289,600, a 15.8% jump from one year ago.
• Existing-home sales in the West declined 3.1% from the month prior, posting an annual rate of 1,230,000 in April, a 53.8% surge from a year ago. The median price in the West was $501,200, up 19.9% from April 2020.