U.S. existing home sales were nearly unchanged in April, while prices hit an all-time April high and inventory stayed tight.
U.S. existing home sales largely flatlined in April, delivering another muted signal for a housing market that is normally at its most active in the spring.
Sales of previously occupied homes rose just 0.2% from March to a seasonally adjusted annual rate of 4.02 million units, according to the National Association of Realtors. The figure was also unchanged compared with April last year, reinforcing the sense that demand is still not breaking higher.
The April result came in below expectations. Economists surveyed by FactSet were looking for a pace closer to 4.12 million units, leaving the latest data short of the modest improvement some analysts had anticipated.
Beyond the monthly print, the broader rhythm of recent years remains evident in the numbers.. Home sales have been hovering near a roughly 4-million annual pace for much of the period since 2023. well below the historic norm of about 5.2 million.. The mismatch highlights how far today’s market is from the volume typically seen in stronger cycles.
While sales have stayed stuck, home prices continued to climb, though at a slower annual pace.. The U.S.. median sales price increased 0.9% from a year earlier to $417. 700. which the NAR said is an all-time high for any April in data going back to 1999.. Prices have risen on an annual basis for 34 straight months. showing that even as transactions slow. the cost of entry has remained a persistent upward force.
The housing market has been under pressure since 2022, when mortgage rates rose from pandemic-era lows.. That shift set the stage for a long slump: existing home sales ended last year at a 30-year low and have remained sluggish so far this year. declining year over year through the first three months.
NAR’s chief economist Lawrence Yun said the spring buying season has not yet shown signs of improvement versus last year. “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,” he said.
Affordability remains a central barrier.. Although average incomes have been rising faster than home prices, the gap is still too wide for many prospective buyers.. In the early part of the decade. rock-bottom mortgage rates helped fuel a buying frenzy and drove prices up sharply; now. those elevated levels continue to freeze out households that cannot bridge the cost gap.
A chronic shortage of homes for sale is also sustaining prices even during a multiyear stretch of weak sales.. The report pointed to years of below-average new construction. which has tightened the number of listings available and helped prevent sales from rebounding even when some buyers are ready to act.
The timing of current transactions may also be shaping the market’s pace.. Many contracts signed last month likely originated in February and March. when the average rate on a 30-year mortgage ranged from 5.98% to 6.38%. according to mortgage buyer Freddie Mac.. That average rate was 6.37% last week. indicating that financing conditions. while improved from earlier extremes. have not been stable enough to trigger a broad comeback.
The mortgage-rate backdrop has been particularly sensitive since the war with Iran began. the report said. as surging energy prices have fed anxiety about higher inflation.. Even when rates remain below where they were a year ago. the ongoing fluctuations can delay decisions. especially for buyers who want certainty before entering the market.
For those who can afford to purchase, there are some signs of improved access. More properties have been showing up on the market, though inventory is still well below historical norms—an important detail because the “more listings” effect is happening against a baseline of scarcity.
At the end of April, there were 1.47 million unsold homes, NAR reported. That was up 5.8% from March and up 1.4% from April last year. The report also noted that April’s month-end inventory is the highest for the month going back to 2019, when the figure was 1.83 million homes.
Even with that improvement, the inventory gap remains large.. The market still has fewer homes than the roughly 2 million units that were typical before the COVID-19 pandemic.. With month-end inventory translating to a 4.4-month supply at the current sales pace. the market is still short of a balanced range—typically considered five to six months.
Yun said the industry would need a significant inventory expansion to rebalance demand and supply. “We really need to see 30% growth in inventory, but we’re not really seeing that,” he said.
The report also suggested a shift in how quickly homes are moving.. Properties typically stayed on the market for 32 days before selling in April. down from 41 days in March but up from 29 days in April last year. according to NAR.. Longer time on market can be a sign that buyers are more selective, particularly when affordability is strained.
As homes linger, asking prices have started to soften in some regions.. The report stated that asking prices have been falling in many metro areas, especially in the South and Midwest.. It also cited Realtor.com data showing the national median home listing price was down in April versus a year earlier.
For the housing market. the combination of flat sales and rising prices is a familiar but frustrating pattern: demand is present. but financing costs and limited affordability keep the pace from accelerating.. At the same time. inventory that improves only gradually limits the market’s ability to clear at higher volumes. sustaining competition for the homes that do become available—an environment that keeps buyers cautious and sellers selective.
U.S. home sales existing home sales housing market mortgage rates home inventory home prices NAR