April existing-home sales down for second month in a row, down 3.4% from March
Hopes for a spring rebound in the housing market seem to have fizzled out as the existing-home sales from April were down from March. The National Association of Realtors® (NAR) reported Thursday that existing-home sales retreated 3.4% in April, the second month of declines. Numbers were down 23.2% from the year before.
All four major regions across the U.S. saw existing-home sales decline, led by a steep drop in the West. All four regions registered a marked decline from the year before.
- Northeast: Down 19%, an annual rate of 510,000, down 23.9% from April 2022
- Midwest: Down 1.9% to an annual rate of 1,020,000, down 21.5% from April 2022
- South: Down 3.4% to an annual rate of 1,980,000, down 20.2% from April 2022
- West: Down 6.1% with an annual rate of 770,000, down 31.3% from April 2022
"Home sales are bouncing back and forth but remain above recent cyclical lows," said NAR Chief Economist Lawrence Yun. "The combination of job gains, limited inventory and fluctuating mortgage rates over the last several months have created an environment of push-pull housing demand."
Find out how mortgage rates are trending this week.
Reasons for optimism in inventory
Total housing inventory increased 7.2% from March at 1.04 million units at the end of the month. This is an increase from a year ago of 1.0%. This represents a 2.9-month supply of homes for sale at the current sales pace, up from the 2.6-month supply of available homes for sale last month. Those supply numbers have been on a positive trend over the last few months.
Month-over-month home prices numbers went up, but year-over-year they remain down. That continues a trend of year-over-year decreases, which is good news for homebuyers dealing with housing affordability issues.
Month | Median existing-home price | Month-over-month | Year-over-year |
$357,300 | Up 2.0% | Up 15.0% | |
$375,300 | Up 5.0% | Up 15.1% | |
$391,200 | Up 4.2% | Up 10.8% | |
$407,600 | Up 4.2% | Up 14.8% | |
$416,000 | Up 2.1% | Up 13.4% | |
$403,800 | Down 2.9% | Up 10.8% | |
$389,500 | Down 3.5% | Up 7.7% | |
$384,800 | Down 1.2% | Up 8.4% | |
$379,100 | Down 1.5% | Up 6.6% | |
$370,700 | Down 2.2% | Up 3.5% | |
$366,900 | Down 1.0% | Up 2.3% | |
$359,000 | Down 2.2% | Up 1.3% | |
$363,000 | Up 1.1% | Down 0.2% | |
$375,700 | Up 3.5% | Down 0.9% | |
April | $388,800 | Up 3.5% | Down 1.7% |
"Roughly half of the country is experiencing price gains," Yun says. "Even in markets with lower prices, primarily the expensive West region, multiple-offer situations have returned in the spring buying season following the calmer winter market. Distressed and forced property sales are virtually nonexistent."
Of note in April, all-cash sales accounted for 28% of transactions in April, up from 27% in March and 26% in April 2022. One way to compete against all-cash buyers is with speed, and our Same Day Mortgage can help you close as fast as cash.
April’s existing-home sales numbers reveal a housing market that’s getting more competitive, all the more reason to work with an expert loan officer to give yourself the best chance to create a winning bid and come out with the home you want.
Source: https://www.nar.realtor/newsroom/existing-home-sales-faded-3-4-in-april