Existing-Home Sales Down 1.9% in April Due to High Mortgage Rates

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Existing-Home Sales Down 1.9% in April Due to High Mortgage Rates

Washington, DC, May 22, 2024-Total existing-home sales slid 1.9% from March to a seasonally adjusted annual rate of 4.14 million in April, according to the National Association of Realtors. Year-over-year, sales fell 1.9% (down from 4.22 million in April 2023).This is the second straight month of decline, as high mortgage rates and near-record home prices continue to stall the market during the prime selling season.

"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."

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. NAR's 2023 Profile of Home Buyers and Sellers found that the annual share of first-time buyers was 32%.

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 represented 2% of sales in April, virtually unchanged from last month and the prior year.