by Despite decrease, home prices rise 1.8% to $414,000, an all-time high for the month of April, according to the National Association of Realtors
WASHINGTON — April existing home sales declined 2% from April last year and also fell .5% from March to a seasonally adjusted rate of 4 million units, the National Association of Realtors reported May 22.
Meanwhile, median existing home sales prices rose 1.8% to $414,000, from $406,000 last year, which the NAR said is an all-time high for the month of April. It also was the 22nd month of year-over-year price increases at a period when the total inventory of unsold existing homes rose nearly 21% year over year.
Overall, existing home sales were down from 4.08 million in April 2024, with year-over-year sales remaining level in the Northeast, but declining in the South, the Midwest and West. Sales since March declined in the Northeast and West and rose in the Midwest, while remaining unchanged in the South.
The report said that single-family home sales totaled 3.63 million units, down 1.4% from April 2024 and down .3% in March. The median single-family home price was $418,000 in April, up 1.7% from last year.
It went on to note that existing condominium and co-op sales for the month of April totaled 370,000 units, down 7.5% from April 2024 and down 2.6% from March. The median price was $370,100, up 1.4% from $364,900 last year.
“Home sales have been at 75% of normal or pre-pandemic activity for the past three years, even with 7 million jobs added to the economy,” said NAR Chief Economist Lawrence Yun. “Pent-up housing demand continues to grow, though not realized. Any meaningful decline in mortgage rates will help release this demand.”
While the median existing home price for all housing types was up 1.8% from last year, there was a significant increase in unsold housing inventory totaling 1.45 million units, up 20.8% from 1.2 million in April 2024 and up 9% from March. The NAR said that unsold inventory is estimated at a 4.4-month supply based on the current rate of sales, up from 3.5 months in April 2024 and up from 4 months in March.
“At the macro level, we are still in a mild seller’s market,” Yun said. “But with the highest inventory levels in nearly five years, consumers are in a better situation to negotiate for better deals.”
By region, existing home sales activity was as follows:
+ In the Northeast, existing-home sales totaled 480,000, unchanged from April 2024 but down 2% from March. The median price in the region was $487,400, up 6.3% from a year earlier.
+ In the Midwest, existing-home sales totaled 970,000, down 1% from April 2024 but up 2.1% from March. The median price in the region was $313,300, up 3.6% from April 2024.
+ In the South, existing home sales totaled 1.81 million, down 3.2% from April 2024 and unchanged from March. The median price in the region was $365,300, down 0.1% from last year.
+ In the West, existing-home sales totaled 740,000, down 1.3% from April 2024 and down 3.9% from March. The median price in the region was $628,500, down 0.2% from April 2024.
Other highlights from the NAR report were as follows:
+ Citing the Realtors Confidence Index, the NAR said that properties remained on the market for 29 days in April, up from 26 days in April 2024 and down from 36 days in March.
+ First-time home buyers accounted for 34% of sales in April, up from 33% in April 2024 and up from 32% in March.
+ Cash sales accounted for 25% of transactions in April, down from 28% in April 2024 and down from 26% in March. Individual investors, or second-home buyers that account for many of these types of sales, purchased 15% of homes in April, down from 16% in April 2024 but level with March.
+ Distressed sales including foreclosures and short sales represented 2% of sales in April, level with April 2024 and down from 3% in March.
+ Citing Freddie Mac, the 30-year fixed-rate mortgage averaged 6.81% as of May 15, down from 7.02% a year earlier but up from 6.76% a week prior.
