United States existing home sales remain relatively steady in April, as affordability remains an issue.
According to the National Association of Realtors Existing Homes Report, existing home sales rose 0.2% month-over-month in April to 4.02 million units.
Analysts polled by Reuters had forecast home resales would rise to a rate of 4.05 million.
There was also no change in home sales year-over-year, even as the median existing home price rose 0.9%. This marks the 34th consecutive month of year-over-year price increases.
Month-over-month sales increased in the Midwest and the South, were unchanged in the Northeast, and declined in the West. On a year-over-year basis, sales rose in the South, were flat in the West, and fell in both the Northeast and Midwest.
This also comes as mortgage rates are lower than a year ago, and average income growth is outpacing home price gains.
“Despite mixed macroeconomic signals—including a record-high stock market and historically low consumer confidence—home sales were modestly boosted by the continued improvement in housing affordability,” NAR chief economist Lawrence Yun said.
Yun also said inventory remains tight, but offers are still being made.
“Multiple offers, though not as intense as a few years ago, are still occurring,” he said.
“At the same time, days on market are lengthening on average, implying that consumers are taking their time before making decisions.
“The increase in second-home purchases reflects stronger finances among higher-income households, as well as the post-COVID rise in remote work and hybrid job schedules.”
Total housing inventory for April rose 5.8% from March and 1.4% from the same time last year.
The average rate on the popular 30-year fixed-rate mortgage dropped to 5.98% in late February before jumping to 6.38% by the end of March, data from Freddie Mac showed. Mortgage rates increased in response to rising inflation, stoked by the U.S.-Israeli war with Iran. The 30-year fixed rate, which vaulted to 6.46% in early April, averaged 6.37% last week.
This also comes as consumer prices surged in March, posting their biggest annual increase in nearly two years.
The government is expected to report a 3.7% year-over-year jump in the consumer price index in April, according to analysts surveyed by Reuters.
This would be the largest gain since September 2023.
The NAR’s housing affordability index also slipped to 110.6 to 113.5 in March, but was up from 101.4 a year ago.
