April Existing Home Sales Down 3.4%

April existing home sales fell by 3.4 percent, but showed potential signs of stabilizing, the National Association of Realtors reported Thursday.

NAR said total existing home sales fell from March to a seasonally adjusted annual rate of 4.28 million. Year-over-year, sales fell by 23.2% (down from 5.57 million in April 2022). Single-family home sales fell to a seasonally adjusted annual rate of 3.85 million, down 3.5% from 3.99 million in March and 22.4% from a year ago. The median existing single-family home price fell to $393,300 in April, down 2.1% from April 2022. Existing condominium and co-op sales fell to a seasonally adjusted annual rate of 430,000 units in April, down 2.3% from March and 29.5% from one year ago. The median existing condo price rose to $348,000 in April, an annual increase of 0.7%.

All four regions fell on a monthly and annual basis. Sales in the Northeast fell by 1.9% from March to an annual rate of 510,000 in April and fell by 23.9% from a year ago. The median price in the Northeast rose to $422,700, up 2.8% from the previous year. In the Midwest, sales fell by 1.9% from March to an annual rate of 1.02 million and fell by 21.5% from the prior year. The median price in the Midwest rose to $287,300, up 1.8% from April 2022.

Sales in the South fell by 3.4% from March to an annual rate of 1.98 million and fell by 20.2% from one year ago. The median price in the South fell to $357,900, down 0.6% from April 2022. In the West, sales fell by 6.1% from March to an annual rate of 770,000 and dropped by 31.3% from the previous year. The median price in the West fell to $578,200, down 8.0% from April 2022.

Total housing inventory at the end of April rose to 1.04 million units, up 7.2% from March and 1.0% from one year ago (1.03 million). Unsold inventory sits at a 2.9-month supply at the current sales pace, up from 2.6 months in March and 2.2 months in April 2022. The median existing-home price for all housing types in April fell to $388,800, a decline of 1.7% from April 2022 ($395,500).

“Despite the dip in April, home buying looks to be stabilizing,” said Charlie Dougherty, Economist with Wells Fargo Economics, Charlotte, N.C. “Homes that do get listed are spending comparatively less time on the market.”

“Home sales are bouncing back and forth but remain above recent cyclical lows,” said NAR Chief Economist Lawrence Yun. “The combination of job gains, limited inventory and fluctuating mortgage rates over the last several months have created an environment of push-pull housing demand.”

Yun noted roughly half of the country is experiencing price gains. “Even in markets with lower prices, primarily the expensive West region, multiple-offer situations have returned in the spring buying season following the calmer winter market,” he said. “Distressed and forced property sales are virtually nonexistent.”

The report said properties typically remained on the market for 22 days in April, down from 29 days in March but up from 17 days in April 2022. Seventy-three percent of homes sold in April were on the market for less than a month.

First-time buyers were responsible for 29% of sales in April, up from 28% in both March 2023 and April 2022. All-cash sales accounted for 28% of transactions in April, up from 27% in March and 26% the previous year. Individual investors or second-home buyers purchased 17% of homes in April, unchanged from March and one year ago.

The report said distressed sales represented 1% of sales in April, unchanged from last month and a year ago.