Existing home sales fell in April as house prices reached record highs, a new report from the National Association of Realtors found.
Sales of previously owned homes fell 1.9% in April from March to 4.14 million units, on a seasonally adjusted annualized basis. Sales also fell by 1.9% year over year from April 2023 when 4.22 million units were sold. This is according to a recent report published by the National Association of Realtors. The forecast had been for a slight gain.
Single-family home sales fell 2.1% in April to 3.74 million units. Existing condominium and co-op sales remained unchanged from March but are down 7% from April 2023.
Regionally, existing home sales slipped the most in the Northeast, falling by 4%. The sales of previously owned homes also slipped 2.6% in the West, 1.6% in the South, and 1% in the Midwest.
The numbers are based on closings, which means contracts were likely signed in February and March.
Home Prices Reached Record High
Home sales slid in April as the median price of previously owned homes in the US rose 5.7% in April to $407,600, the report noted. It was the fourth consecutive month that home prices rose and the 10th month in a row of year-over-year increases. It is also a record for April prices.
All four regions in the US registered price gains.
"Home prices reaching a record high for the month of April is very good news for homeowners," NAR Chief Economist Lawrence Yun said in the report. "However, the pace of price increases should taper off since more housing inventory is becoming available."
While high home prices may have contributed to sluggish sales figures, mortgage rates also played a significant role. Current mortgage rates are below the 8% peak in October 2023, but they are still hovering above 7%. The average rate on a 30-year fixed loan was 7.02% in the week ending May 16. The average rate on a 15-year loan was 6.28% in the same period, according to Freddie Mac's Primary Mortgage Market Survey.
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