dailyloe.com – Sales of previously occupied U.S. homes were nearly unchanged in April, marking another weak performance for the housing market during its busiest season. Existing home sales increased by 0.2% from March to a seasonally adjusted annual rate of 4.02 million units, according to the National Association of Realtors (NAR). Year-over-year, sales remained flat, falling short of the estimated 4.12 million pace by economists, as reported by FactSet.
Home sales have hovered around a 4-million annual pace since 2023, significantly below the historic norm of approximately 5.2 million. Meanwhile, the U.S. median sales price rose by 0.9% in April from the previous year, reaching an all-time high of $417,700, the highest for any April since data collection began in 1999. Prices have increased annually for 34 consecutive months.
The housing market has faced challenges since 2022, when mortgage rates began to rise from pandemic lows. Last year, home sales remained stagnant, reaching a 30-year low, and have continued to decline in 2023 compared to early last year. Lawrence Yun, NAR’s chief economist, stated, “This spring homebuying season, so far all the way through April, we can say we are not predicting any increase compared to one year ago.”
The inventory of homes on the market exacerbates the situation. Homes sold in April likely went under contract in February and March, during which the average 30-year mortgage rate fluctuated between 5.98% and 6.38%. Last week, the average rate was reported at 6.37%. Although this rate is lower than a year ago, fluctuations have been influenced by rising energy prices and concerns about inflation.
Buyers who can afford to purchase are experiencing increased availability, but home inventory remains significantly below historical averages. At the end of April, there were 1.47 million unsold homes available, marking a 5.8% increase from March and a 1.4% rise from April last year. This was the highest number of homes on the market for April since 2019, when inventory stood at 1.83 million homes, yet it is still short of the typical 2 million homes available before the COVID-19 pandemic.
