Existing-home sales reverse course with a decrease in April.
All four regions saw a drop in existing-home sales in April, as the nationwide number was down 1.9% from March 2024. Coincidentally, existing-home sales dropped 1.9% from April 2023 as well, according to a report released by the National Association of Realtors® (NAR). Closings slid to a seasonally adjusted annual rate of 4.14 million.
- Northeast: down 4.0%, an annual rate of 480,000, down 4.0% from April 2023
- Midwest: down 1.0% an annual rate of 1,000,000, down 1.0% from April 2023
- South: down 1.6% an annual rate of 1,900,000, down 3.1% from April 2023
- West: down 2.6% an annual rate of 760,000, up 1.3% from 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. No matter what end of the market you’re looking for homes in, start by getting preapproved. This will help make sure that you’re ready to move quickly and beat the competition.
Inventory looking up
For the fourth month in a row, there was good news about the numbers of homes that are for sale, also known as housing inventory. The lack of homes for sale has been one of the factors that have driven home prices up and frustrated would-be buyers.
But total housing inventory in April came in at 1.21 million units. This is up 9% from the month before and 16.3% from a year ago. There’s a 3.5-month supply of homes for sale at the current buying pace. That is also up from the previous month and last year’s numbers. And to Yun’s point above about the upper end of the market, for homes priced $1 million or more, inventory increased by 34% from last year.
Home price trends
Despite more homes for sale this month, that has not had a cooling effect on home prices. For the first time ever, the median existing-home sale price topped $400,000. All four regions saw prices go up.
"Home prices reaching a record high for the month of April is very good news for homeowners," Yun noted. "However, the pace of price increases should taper off since more housing inventory is becoming available."
Here’s how this month’s data compares to the last 12 months of home price trends:
Month | Median existing-home price | Month-over-month | Year-over-year |
$396,100 | Up 1.9% | Down 3.1% | |
$410,200 | Up 3.6% | Down 0.9% | |
$406,700 | Down 0.9% | Up 1.9% | |
$407,100 | Up 0.1% | Up 3.9% | |
$394,300 | Down 3.1% | Up 2.8% | |
$391,800 | Down 0.6% | Up 3.4% | |
$387,600 | Down 1.1% | Up 4.0% | |
$382,600 | Down 1.3% | Up 4.4% | |
$379,100 | Down 0.9% | Up 5.1% | |
$384,500 | Up 1.4% | Up 5.7% | |
$393,500 | Up 2.3% | Up 4.8% | |
April | $407,600 | Up 3.6% | Up 5.7% |
Who’s doing the buying?
First-time homebuyers were responsible for 33% of sales in April, up from 32% in March and 29% in April 2023. All-cash sales made up 28% of transactions in April, exactly the same as the month—and the year—before.
Could this mean that it’s a good market for first-time homebuyers? Possibly, and if it is, Same Day Mortgage can help you compete with deep-pocketed buyers who may purchase with cash.
Source: https://www.nar.realtor/newsroom/pending-home-sales-ascended-3-4-in-march
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