Sales Slip, Inventory Grows
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Existing-home sales slipped a bit in April—down 0.5% from March and 2% from the same time last year. While that might seem like a slowdown, Lawrence Yun, chief economist for the National Association of REALTORS (NAR), notes that the market has been running below prepandemic levels for three years, even with steady job growth. The big picture? Buyers are still interested—they’re just holding off for now because of high mortgage rates.
Inventory on the Rise
Housing supply grew by 9% in April, reaching 1.45 million homes for sale—about 4.4 months’ worth at the current sales pace. That’s up from 3.5 months a year ago and marks the highest inventory level in nearly five years. While it’s still a seller’s market by definition, buyers now have more choices and, in some areas, more room to negotiate.
Prices Hit a Record High for April
The median existing-home price reached $414,000 in April—a new record for that month and a 1.8% increase year over year. This marks the 22nd consecutive month of annual price growth. However, price trends were mixed by region, with increases in the Northeast and Midwest and slight declines in the South and West. Sellers still hold some leverage, but price sensitivity is growing as buyers contend with affordability challenges.
First-Time Buyers Gaining Ground
First-time buyers accounted for 34% of April’s home purchases—the highest share in recent months. It’s an encouraging sign that entry-level demand is picking up. Meanwhile, cash sales made up 25% of the market, down slightly from March. Distressed sales remained low at just 2%, pointing to overall market stability.
Mortgage Rates Still a Hurdle
The average 30-year fixed mortgage rate is holding just below 7%. That’s a bit better than last year, but still a challenge for many buyers. Both buyers and sellers are keeping a close eye on rate movement. A meaningful drop could spark renewed activity and shift the market’s momentum.
Sales Slip, Inventory Grows
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