Home sales across the nation posted a modest gain in April, though the increase fell below what economists had anticipated, according to new data released Monday by the National Association of Realtors.
Sales of previously owned homes climbed 0.2% during the month, reaching a seasonally adjusted annual pace of 4.02 million units. Economic forecasters had predicted sales would reach 4.05 million units.
Lawrence Yun, chief economist for the National Association of Realtors, noted the complex economic environment affecting the market. “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,” Yun explained.
The sales figures represent completed transactions from contracts that were typically signed during February and March.
Mortgage rates have been volatile, with the 30-year fixed rate falling to 5.98% in late February before surging to 6.38% by March’s end, according to Freddie Mac data. These rate increases came as inflation pressures mounted, partly due to geopolitical tensions involving the U.S.-Israel conflict with Iran. Rates peaked at 6.46% in early April and averaged 6.37% last week.
Consumer prices jumped significantly in March, marking the steepest annual increase in nearly two years. Economists expect Tuesday’s Consumer Price Index report to show a 3.7% year-over-year increase for April, which would represent the largest gain since September 2023.
The housing affordability index improved to 110.6 in April, up from 101.4 the previous year. The typical home price reached $417,700 last month, representing a 0.9% increase from April 2023.
Regional variations showed sales growing in Southern and Midwestern markets, while Western sales declined and Northeastern sales remained flat. Nationally, sales matched last year’s April levels.
Available inventory grew 5.8% to 1.47 million homes, though supply remains significantly below pre-pandemic levels. Year-over-year inventory increased 1.4%.
Based on current sales activity, the existing inventory would be depleted in 4.4 months, slightly longer than the 4.3 months recorded a year earlier. Properties stayed on the market for a median of 32 days, up from 29 days in April 2023.
Yun observed continuing market tightness. “Inventory still remains tight,” he said. “Multiple offers, though not as intense as a few years ago, are still occurring. At the same time, days on market are lengthening on average, implying that consumers are taking their time before making decisions.”
First-time purchasers represented 33% of all sales, down from 34% the previous year. Industry experts say a healthy market requires first-time buyers to comprise 40% of transactions. Cash purchases accounted for 25% of sales, unchanged from last year, while distressed sales including foreclosures remained steady at 2% of all transactions.
