For the third consecutive month, existing-home sales declined nationally in April. Per the National Association of Realtors, all but one (the Midwest) of the four major U.S. regions witnessed month-over-month drops in home sales, but each registered double-digit year-over-year gains for April.
Total existing-home sales fell 2.7 percent from March to a seasonally-adjusted annual rate of 5.85 million in April. Sales overall are up year-over-year, with NAR estimating a nearly 34 percent increase from a year ago (4.37 million in April 2020).
“Home sales were down again in April from the prior month, as housing supply continues to fall short of demand,” said Lawrence Yun, NAR’s chief economist. “We’ll see more inventory come to the market later this year as further COVID-19 vaccinations are administered and potential home sellers become more comfortable listing and showing their homes. The falling number of homeowners in mortgage forbearance will also bring about more inventory.
“Despite the decline, housing demand is still strong compared to one year ago, evidenced by home sales from this January to April, which are up 20 percent compared to 2020,” Yun continued. “The additional supply projected for the market should cool down the torrid pace of price appreciation later in the year.”
The median existing-home price in April was $341,600, up 19.1 percent year-over-year. Per NAR, this is a record high and marks 110 straight months of year-over-year gains.
Inventory was also up 10.5 percent in April, compared to the month prior. Properties typically remained on the market for 17 days in April, down from 18 days in March. But here’s the real eye-opening stat: An estimated 88 percent percent of the homes sold last month were on the market for less than a month!