Existing-Home Sales Retreated 1.9% in April
May 22 2024 - 10:00AM
Key Highlights
- Existing-home sales
faded 1.9% in April to a seasonally adjusted annual rate of 4.14
million. Sales also dipped 1.9% from one year ago.
- The median
existing-home sales price grew 5.7% from April 2023 to $407,600 –
the tenth consecutive month of year-over-year price gains and the
highest price ever for the month of April.
- The inventory of
unsold existing homes climbed 9% from one month ago to 1.21 million
at the end of April, or the equivalent of 3.5 months’ supply at the
current monthly sales pace.
Existing-home
sales receded in April, according to the National Association of
Realtors®. All four major U.S. regions posted month-over-month
declines. Year-over-year, sales decreased in the Northeast, Midwest
and South but increased in the West.Total existing-home
sales[1] – completed transactions that include single-family
homes, townhomes, condominiums and co-ops – slid 1.9% from March to
a seasonally adjusted annual rate of 4.14 million in April.
Year-over-year, sales fell 1.9% (down from 4.22 million in April
2023).“Home sales changed little overall, but the upper-end market
is experiencing a sizable gain due to more supply coming onto the
market,” said NAR Chief Economist Lawrence Yun.Total housing
inventory[2] registered at the end of April was 1.21 million
units, up 9% from March and 16.3% from one year ago (1.04 million).
Unsold inventory sits at a 3.5-month supply at the current sales
pace, up from 3.2 months in March and 3.0 months in April 2023. For
homes priced $1 million or more, inventory and sales increased by
34% and 40%, respectively, from a year ago.The median existing-home
price[3] for all housing types in April was $407,600, an increase
of 5.7% from the previous year ($385,800). All four U.S. regions
registered price gains.“Home prices reaching a record high for the
month of April is very good news for homeowners,” Yun added.
“However, the pace of price increases should taper off since more
housing inventory is becoming available.”REALTORS® Confidence
IndexAccording to the monthly REALTORS® Confidence Index,
properties typically remained on the market for 26 days in April,
down from 33 days in March but up from 22 days in April
2023.First-time buyers were responsible for 33% of sales in April,
up from 32% in March and 29% in April 2023. NAR’s 2023 Profile of
Home Buyers and Sellers – released in November 2023[4] – found that
the annual share of first-time buyers was 32%.All-cash sales
accounted for 28% of transactions in April, identical to March and
one year ago.Individual investors or second-home buyers, who make
up many cash sales, purchased 16% of homes in April, up from 15% in
March but down from 17% in April 2023.Distressed sales[5] –
foreclosures and short sales – represented 2% of sales in April,
virtually unchanged from last month and the prior year.Mortgage
RatesAccording to Freddie Mac, the 30-year fixed-rate mortgage
averaged 7.02% as of May 16. That’s down from 7.09% the previous
week but up from 6.39% one year ago.Single-family and
Condo/Co-op SalesSingle-family home sales decreased to a
seasonally adjusted annual rate of 3.74 million in April, down 2.1%
from 3.82 million in March and 1.3% from the prior year. The median
existing single-family home price was $412,100 in April, up 5.6%
from April 2023.At a seasonally adjusted annual rate of 400,000
units in April, existing condominium and co-op sales were unchanged
from last month and down 7% from one year ago (430,000 units). The
median existing condo price was $365,300 in April, up 5.4% from the
previous year ($346,700).Regional Breakdown Existing-home
sales in the Northeast waned 4% from March to an annual rate of
480,000 in April, a decline of 4% from April 2023. The median price
in the Northeast was $458,500, up 8.5% from the previous year.In
the Midwest, existing-home sales slipped 1% from one month ago to
an annual rate of 1 million in April, down 1% from one year ago.
The median price in the Midwest was $303,600, up 6% from April
2023.Existing-home sales in the South descended 1.6% from March to
an annual rate of 1.9 million in April, down 3.1% from the prior
year. The median price in the South was $366,200, up 3.7% from last
year.In the West, existing-home sales retracted 2.6% from a month
ago to an annual rate of 760,000 in April, an increase of 1.3% from
one year before. The median price in the West was $629,600, up 9.3%
from April 2023.About the National Association of
Realtors®The National Association of Realtors® is America’s
largest trade association, representing 1.5 million members
involved in all aspects of the residential and commercial real
estate industries. The term Realtor® is a registered collective
membership mark that identifies a real estate professional who is a
member of the National Association of Realtors® and subscribes to
its strict Code of Ethics.
# # #
For local information, please contact the local association of
Realtors® for data from local multiple listing services (MLS).
Local MLS data is the most accurate source of sales and price
information in specific areas, although there may be differences in
reporting methodology.NOTE: NAR’s Pending Home Sales Index
for April is scheduled for release on May 30, and Existing-Home
Sales for May will be released on June 21. Release times are 10
a.m. Eastern.
Information about NAR is available at
nar.realtor. This and other news releases are posted in
the newsroom at nar.realtor/newsroom.
Statistical data in this release, as well as other tables and
surveys, are posted in the “Research and Statistics” tab.
[1] Existing-home sales, which include single-family, townhomes,
condominiums and co-ops, are based on transaction closings from
Multiple Listing Services. Changes in sales trends outside of MLSs
are not captured in the monthly series. NAR benchmarks home sales
periodically using other sources to assess overall home sales
trends, including sales not reported by MLSs.Existing-home sales,
based on closings, differ from the U.S. Census Bureau’s series on
new single-family home sales, which are based on contracts or the
acceptance of a deposit. Because of these differences, it is not
uncommon for each series to move in different directions in the
same month. In addition, existing-home sales, which account for
more than 90% of total home sales, are based on a much larger data
sample – about 40% of multiple listing service data each month –
and typically are not subject to large prior-month
revisions.
The annual rate for a particular month represents what the total
number of actual sales for a year would be if the relative pace for
that month were maintained for 12 consecutive months. Seasonally
adjusted annual rates are used in reporting monthly data to factor
out seasonal variations in resale activity. For example, home sales
volume is normally higher in the summer than in the winter,
primarily because of differences in the weather and family buying
patterns. However, seasonal factors cannot compensate for abnormal
weather
patterns.
Single-family data collection began monthly in 1968, while condo
data collection began quarterly in 1981; the series were combined
in 1999 when monthly collection of condo data began. Prior to this
period, single-family homes accounted for more than nine out of 10
purchases. Historic comparisons for total home sales prior to 1999
are based on monthly single-family sales, combined with the
corresponding quarterly sales rate for condos.
[2] Total inventory and month’s supply data are available back
through 1999, while single-family inventory and month’s supply are
available back to 1982 (prior to 1999, single-family sales
accounted for more than 90% of transactions and condos were
measured only on a quarterly basis).
[3] The median price is where half sold for more and half sold
for less; medians are more typical of market conditions than
average prices, which are skewed higher by a relatively small share
of upper-end transactions. The only valid comparisons for median
prices are with the same period a year earlier due to seasonality
in buying patterns. Month-to-month comparisons do not compensate
for seasonal changes, especially for the timing of family buying
patterns. Changes in the composition of sales can distort median
price data. Year-ago median and mean prices sometimes are revised
in an automated process if additional data is received.The national
median condo/co-op price often is higher than the median
single-family home price because condos are concentrated in
higher-cost housing markets. However, in a given area,
single-family homes typically sell for more than condos as seen in
NAR’s quarterly metro area price reports.
[4] Survey results represent owner-occupants and differ from
separately reported monthly findings from NAR’s REALTORS®
Confidence Index, which include all types of buyers. The annual
study only represents primary residence purchases, and does not
include investor and vacation home buyers. Results include both new
and existing homes.
[5] Distressed sales (foreclosures and short sales), days on
market, first-time buyers, all-cash transactions and investors are
from a monthly survey for the NAR’s REALTORS® Confidence Index,
posted at nar.realtor.
Troy Green
National Association of Realtors®
tgreen@nar.realtor