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Existing-home sales tumble in April, reach lowest level since 2010
Existing-home sales tumbled 17.8 percent in April to a seasonally adjusted annual rate of 4.33 million units, reaching its lowest level since July 2010. NAFCU Chief Economist and Vice President of Research Curt Long noted the drop is "an abrupt change from February's 13-year high" in a new Macro Data Flash report.
"The COVID-19 crisis is attacking the market on all fronts, from preventing homes being shown to buyers to widespread job losses and financial institutions tightening mortgage requirements," said Long. "Spring is usually the busiest time for home sales, but there are indications that there is pent-up demand in states that are beginning to open again.
"NAFCU expects a partial recovery during the summer as pent up demand is released, but supply shortages will continue to restrain sales," Long added.
Sales decreased in all four regions during the month: in the West (-25 percent), South (-17.9 percent), and Northeast (-16.9 percent) and Midwest (-12 percent).
Based on current sales levels, there was 4.1 months of supply at the end of April, up from 0.7 months in March. Analysts consider 6 months of supply to be roughly balanced between supply and demand.
The median existing home price increased from $280,600 the previous month to $286,800 in April (not seasonally adjusted). The amount represents a 7.5 percent increase from the median price a year ago.