by Sales also fall 1.9% from March, while the value of homes continues to increase
WASHINGTON — Year-over-year existing home sales fell 1.9% in April and also fell by the same percentage compared to March, according to data released by the National Association of Realtors on Wednesday.
Still, the value of homes continued to increase in April from one year ago, marking the 10th consecutive month of year-over-year increases and the highest price on record for the month of April.
There were 4.14 million existing homes sold in April, compared to 4.22 million in April 2023 and March 2023.
Year-over-year declines occurred in the Northeast, the Midwest and the South, but sales rose in the West, while all four regions experienced a decline from March.
With all four regions of the country posting gains, the median existing price for all housing types in April — including single-family homes, condominiums and co-ops — was $407,600 in April, up 5.7% from $385,800 in April 2023.
NAR Chief Economist Lawrence Yun said that while home sales changed little overall, there was a gain in the upper end of the market because of additional supply in the marketplace. He added that the record price increase for April is “very good news for homeowners. However, the pace of price increases should taper off since more housing inventory is becoming available.”
According to the NAR, there were 1.21 million units on the market at the end of April, up 16.3% from 1.04 million last year and 9% from 1.1 million units in March.
Of the total homes sold, single-family home sales totaled 3.74 million in April, or 90% of the total sold. This was down 1.3% from 3.79 million sold in April 2023 and down 2% from the 3.82 million sold in March. The median existing single-family home sale price was $412,000 in April, up 5.6% from April 2023.
There were 400,000 condominium and co-op units sold in April, down 7% from 430,000 units in April 2023 and unchanged from March. The median existing condo price was $365,300 in April, up 5.4% from $346,700 in Apil 2023.
“Home prices reaching a record high for the month of April is very good news for homeowners,” Yun said, adding that the pace of price increases should level off because of the additional inventory that has become available.
Jack Macdowell, chief investment officer of the Pallisades Group, said that higher interest rates continue to suppress resale inventory as homeowners are reluctant to sell their homes, causing them to forfeit lower-rate mortgages.
“This dynamic is creating space for new home sales to thrive as they represent a larger portion of overall inventory and builders are able to repurpose incentives to buy down the rate for prospective homebuyers,” he said. “We expect to continue to see this strength in new home sales with the Fed’s rate cuts seemingly postponed and the lock-in effect limiting the supply of homes available for sale.”
Added Robert Frick, corporate economist with Navy Federal Credit Union, “Normally at this time of year, we’d see a surge in home sales, but mortgage rates continue to depress listings and buying. And unfortunately, prices continue to rise, further pushing the opportunity away from lower-income and even middle-income Americans. The only real relief to the situation will come from the Fed cutting rates later this year, which will eventually filter through to mortgage rates.”
By region, the activity was as follows:
+ In the Northeast, existing home sales fell 4% from March and 4% from April 2023 to 480,000 in April. The median price rose 8.5% from April 2023 to $458,500.
+ In the Midwest, sales fell 1% in March and 1% in April to an annual rate of 1 million. The median sales price was $303,600, up 6% from April 2023.
+ In the South, sales fell 1.6% from March and 3.1% from April 2023 to 1.9 million. The median price in the region was $366,200, up 3.7% from April 2023.
+ In the West, sales fell 2.6% in March and rose 1.3% from April 2023 to 760,000. The median price here was $629,600, up 9.3% from April 2023.
Other key takeaways from the report were as follows:
+ The NAR said that properties typically remained on the market for 26 days in April, up from 22 days in April 2023 but down from 33 days in March.
+ First-time buyers accounted for 33% of sales in April, up from 29% in April 2023 and up from 32% in March.
+ All-cash sales accounted for 28% of transactions in April, even with April 2023 and March. Individual investors, or second-home buyers that make up many cash sales, purchased 16% of homes in April, down 17% from April 2023 and up from 15% in March.
+ Foreclosures and short sales represented 2% of sales in April, roughly the same as April 2023 and March.
+ A 30-year fixed-rate mortgage averaged 7.02% as of May 16, up from 6.39% last year and down from 7.09% the prior week.
