Existing-home sales fall in April
After two straight months of gains, existing-home sales fell 2.5% in April to a seasonally adjusted rate of 5.46 million from 5.60 million in March, the National Association of Realtors (NAR) reported today.
The results include total sales of single-family homes, townhomes, condos, and co-ops. With the decline in April, existing-home sales for the year are 1.4% below a year ago and have fallen year-over-year for two consecutive months.
Existing single-family home sales declined 3% percent to a seasonally adjusted annual rate of 4.84 million in April from 4.99 million in March, and are 1.6% below the 4.92 million sales pace a year ago.
According to NAR chief economist Lawrence Yun, the catalyst of the drop-off is a lack of inventory on the market.
“Realtors say the healthy economy and job market are keeping buyers in the market for now even as they face rising mortgage rates. However, inventory shortages are even worse than in recent years, and home prices keep climbing above what many home shoppers are able to afford,” Yun said.
In meantime, the prices of homes that are available continue to climb.
The median existing-home price for all housing types in April was $257,900, up 5.3% from the April 2017 median price of $245,000. March’s price increase marks the 74th straight month of year-over-year gains, the NAR said. The median existing single-family home price was $259,900 in April, up 5.5% from April 2017.
Total housing inventory at the end of April increased 9.8% to 1.80 million existing homes available for sale, but this is still 6.3% lower than a year. Unsold inventory is at a 4-month supply at the current sales pace.
April existing-home sales dropped in all regions falling 4.4% in the Northeast, 3% in the Midwest, 2.9% in the South, and 3.3% in the West.
“With mortgage rates and home prices continuing to climb, an increase in housing supply is absolutely crucial to keeping affordability conditions from further deterioration,” said Yun. “The current pace of price appreciation far above incomes is not sustainable in the long run.”
First-time buyers were 33 percent of sales in April, the highest since July 2017.
The hottest metro markets in April were Midland, Texas; Boston-Cambridge-Newton, Mass.; San Francisco-Oakland-Hayward, Calif.; Columbus, Ohio; and Vallejo-Fairfield, Calif., according to the NAR.
The results include total sales of single-family homes, townhomes, condos, and co-ops. With the decline in April, existing-home sales for the year are 1.4% below a year ago and have fallen year-over-year for two consecutive months.
Existing single-family home sales declined 3% percent to a seasonally adjusted annual rate of 4.84 million in April from 4.99 million in March, and are 1.6% below the 4.92 million sales pace a year ago.
According to NAR chief economist Lawrence Yun, the catalyst of the drop-off is a lack of inventory on the market.
“Realtors say the healthy economy and job market are keeping buyers in the market for now even as they face rising mortgage rates. However, inventory shortages are even worse than in recent years, and home prices keep climbing above what many home shoppers are able to afford,” Yun said.
In meantime, the prices of homes that are available continue to climb.
The median existing-home price for all housing types in April was $257,900, up 5.3% from the April 2017 median price of $245,000. March’s price increase marks the 74th straight month of year-over-year gains, the NAR said. The median existing single-family home price was $259,900 in April, up 5.5% from April 2017.
Total housing inventory at the end of April increased 9.8% to 1.80 million existing homes available for sale, but this is still 6.3% lower than a year. Unsold inventory is at a 4-month supply at the current sales pace.
April existing-home sales dropped in all regions falling 4.4% in the Northeast, 3% in the Midwest, 2.9% in the South, and 3.3% in the West.
“With mortgage rates and home prices continuing to climb, an increase in housing supply is absolutely crucial to keeping affordability conditions from further deterioration,” said Yun. “The current pace of price appreciation far above incomes is not sustainable in the long run.”
First-time buyers were 33 percent of sales in April, the highest since July 2017.
The hottest metro markets in April were Midland, Texas; Boston-Cambridge-Newton, Mass.; San Francisco-Oakland-Hayward, Calif.; Columbus, Ohio; and Vallejo-Fairfield, Calif., according to the NAR.