Newsroom
Existing home sales fell in April for third straight month
Existing home sales fell 2.4 percent in April to a seasonally adjusted annualized rate of 5.61 million units, representing a 5.9 percent decrease in sales compared to last year. NAFCU Chief Economist and Vice President of Research Curt Long analyzes the data in the latest Macro Data Flash report.
“Existing home sales fell for the third straight month in April. The inventory-to-sales ratio rose slightly, evidence that demand is cooling due to higher mortgage rates,” said Long.
“Fannie Mae's Home Purchase Sentiment Index sunk to its lowest level since May 2020," added Long. "Furthermore, respondents expressed heightened concerns about housing affordability and rising mortgage rates."
Based on current month sales, there were 2.2 months of supply in April, slightly up from 1.9 months in March, with analysts considering six months of inventory a rough balance between supply and demand.
Sales fell in half of the regions last month, with the West falling by 5.8 percent, followed by a 4.6 percent decline in the South. Sales in the Midwest grew by 3.1 percent, and in the Northeast sales grew by 1.5 percent.
“Despite the 30-year fixed mortgage rate having reached 5.1 percent at the end of the month and a record setting 122 months of consecutive year-over-year price increases, demand remains relatively high," noted Long. "According to the National Association of Realtors, properties averaged 17 days on the market in April (the same pace as March), and 88 percent of homes were sold within the month.
"First-time homebuyers represented 28 percent of sales in April, which was 2 percentage points lower than in March," concluded Long. "NAFCU expects home sales totals to trend flat this year due to higher rates and inventory shortages."
Of note, the median existing-home price, non-seasonally adjusted, jumped in April to $391,200, which is 14.9 percent higher than last year.
For more economic updates from NAFCU's award-winning research team, view all of NAFCU's Macro Data Flash reports.