Sales of previously occupied U.S. homes were essentially flat in April, another lackluster showing for the housing market during what’s traditionally its busiest time of the year.
Sales Data and Market Trends
Existing home sales edged up 0.2% last month from March to a seasonally adjusted annual rate of 4.02 million units, the National Association of Realtors said Monday. Sales were unchanged compared to April last year.
The latest sales figure fell short of the roughly 4.12 million pace economists were expecting, according to FactSet.
Sales have been hovering close to a 4-million annual pace now going back to 2023, far short of the historic norm that is closer to 5.2-million.
Price Movements
And home prices continued to rise nationally last month, albeit at a slower rate. The U.S. median sales price increased 0.9% in April from a year earlier to $417,700, an all-time high for any April on data going back to 1999, NAR said. Home prices have risen on an annual basis for 34 months in a row.
Broader Market Context
The U.S. housing market has been in a slump since 2022, when mortgage rates began to climb from pandemic-era lows. Sales of previously occupied U.S. homes were essentially flat last year, stuck at a 30-year low. They have remained sluggish so far this year, declining from a year earlier through the first three months of this year.
The persistent shortage of homes for sale and elevated borrowing costs continue to weigh on affordability, keeping many potential buyers on the sidelines. The spring homebuying season, typically the busiest period, has failed to gain traction, with sales volumes remaining subdued despite a slight uptick in inventory in some markets.
