Kevin Sears President | Official website
Existing-home sales in the United States experienced a slight decline of 0.5% in April, reaching a seasonally adjusted annual rate of 4.00 million units, according to the National Association of REALTORS (NAR). This marks a 2.0% decrease compared to the same period last year.
Sales activity varied across regions, with declines noted in the Northeast and West, growth in the Midwest, and stability in the South. Lawrence Yun, NAR Chief Economist, commented on the market dynamics: "Home sales have been at 75% of normal or pre-pandemic activity for the past three years, even with seven million jobs added to the economy. Pent-up housing demand continues to grow, though not realized. Any meaningful decline in mortgage rates will help release this demand."
The total housing inventory increased by 9.0% from March and stood at 1.45 million units by the end of April, equating to a 4.4-month supply at current sales rates.
The median existing-home price reached $414,000 in April, representing a year-over-year increase of 1.8%. The Northeast and Midwest saw price rises while decreases were observed in the South and West.
Yun noted that despite high inventory levels not seen for nearly five years: "At the macro level, we are still in a mild seller's market... consumers are in a better situation to negotiate for better deals."
First-time home buyers constituted 34% of transactions during April, slightly up from previous months and last year’s figures. Cash sales accounted for 25%, with individual investors or second-home buyers making up 15%.
Mortgage rates averaged 6.81% as reported by Freddie Mac on May 15.
In terms of property types, single-family home sales decreased by 0.3%, while condominium and co-op sales fell by 2.6%. Regionally speaking:
- The Northeast saw a reduction of existing-home sales by 2%.
- Sales rose by 2.1% in the Midwest.
- The South maintained steady figures.
- The West faced a contraction of nearly four percent.
For more information about navigating real estate transactions or local data inquiries, NAR encourages contacting local associations or visiting their website.
