U.S. Existing Home Sales Stagnate in April as Prices Hit Record Highs

Sales of previously occupied U.S. homes were essentially flat in April, another lackluster showing for the housing market during what’s traditionally its busiest time of the year. Existing home sales edged up 0.2% last month from March to a seasonally adjusted annual rate of 4.02 million units, the National Association of Realtors (NAR) reported on Monday.

Sales were unchanged compared to April 2023, falling short of the roughly 4.12 million pace economists had projected, according to FactSet. Sales have hovered near a 4-million annual pace since 2023, far below the historic norm of about 5.2 million.

Home prices continued to rise nationally last month, though at a slower pace. The U.S. median sales price increased 0.9% in April from a year earlier to $417,700, an all-time high for any April since data collection began in 1999, NAR said. Home prices have risen on an annual basis for 34 consecutive months.

Housing Market Slump Persists Since 2022

The U.S. housing market has been in a slump since 2022, when mortgage rates began climbing from pandemic-era lows. Sales of previously occupied U.S. homes were essentially flat last year, hitting a 30-year low. They have remained sluggish so far in 2024, declining from the prior year through the first three months of the year.

“This spring homebuying season, so far all the way through April, we can say we are not predicting any increase compared to one year ago.”
— Lawrence Yun, NAR Chief Economist

While average incomes are now rising at a faster pace than U.S. home prices, affordability remains a major hurdle for aspiring homeowners. Years of soaring home prices—particularly in early 2020 and 2021 when rock-bottom mortgage rates fueled a buying frenzy—have left many would-be buyers priced out of the market.

A chronic shortage of homes for sale nationally, partly due to years of below-average new home construction, has helped sustain high prices despite the multiyear sales slump.

Mortgage Rates Fluctuate Amid Economic Uncertainty

Homes purchased last month likely went under contract in February and March, when the average rate on a 30-year mortgage ranged from 5.98%—its lowest level in three and a half years—to 6.38%, according to mortgage buyer Freddie Mac. The average rate stood at 6.37% last week.

While the average rate remains below last year’s levels, it has been volatile since the escalation of geopolitical tensions, as surging energy prices heighten concerns about inflation. Those who can afford to buy are benefiting from a slight uptick in available properties, though inventory remains far below historical norms.

At the end of April, there were 1.47 million unsold homes, up 5.8% from March and 1.4% from April 2023, NAR reported. This marks the highest April inventory since 2019, when month-end inventory stood at 1.83 million homes—still well below the roughly 2 million homes for sale typically seen in a balanced market.