Existing home sales decline in April | Wilnesh News

On a seasonally adjusted annualized basis, sales of previously owned homes fell 1.9% in April from March to 4.14 million units, according to the National Association of Realtors. The forecast is for a slight increase.

Sales were also down from April 2023, down 1.9% from last year.

These sales are based on volume, so contracts are likely to be signed in February and March. Mortgage rates rose sharply in early February, stayed around 7% for the next two months, and then moved higher in April.

“When we see these mortgage rates increase by 300 basis points from pre-COVID, we’re in new territory in terms of how the lockdown effects are going to suppress home sales,” said Lawrence Yun, chief economist for the Association of Realtors. .

The total housing inventory at the end of April was 1.21 million units, an increase of 9% from the previous quarter and an increase of 16% from the same period last year. However, at the current sales rate, the supply is still only enough for 3.5 months. A 6-month supply is considered a balance between buyers and sellers. However, the supply of homes priced over $1 million is increasing 40% annually, which is why this market is the most active.

Sales of homes priced under $100,000 fell 7.1% year over year, while sales of homes priced over $1 million grew 40%.

Tight supplies are keeping prices under pressure. The median existing home sales in April was $407,600, up 5.7% year over year. This is another all-time high for April. Due to high demand, 27% of homes sold above list price after multiple offers.

“House prices hit a record high in April, which is good news for homeowners,” Yun said. “However, as more housing inventory is being added, the pace of price increases should gradually slow.”

First-time homebuyers rebounded slightly, accounting for 33% of sales in April, up from 29% a year earlier. The proportion of all-cash transactions remains high, accounting for 28% of all transactions.

From a regional perspective, sales in the Northeast region fell 4% from March and 4% from April 2023.

In the Midwest, sales were down 1% from the previous quarter and 1% year-over-year. The median in the Midwest is $303,600, up 6% from April 2023.

Sales in the southern region fell 1.6% from March and 3.1% from the same period last year. The median in the South is $366,200, up 3.7% from last year.

In the West, sales fell 2.6% for the month and were up 1.3% from a year earlier. The median in the West is $629,600, up 9.3% from April 2023.