Existing Home Sales Decline 2.7% in April

The National Association of Realtors® (NAR) is reporting that total existing home sales — which are completed transactions for single-family homes, townhomes, condominiums and co-ops — declined in April for the third consecutive month, down -2.7% below March, to a seasonally adjusted rate at 5.85 million homes. Year-over-year sales are up 33.9% (4.37 million in April 2020). At the end of April, unsold inventory amounted to 1.16 million units, up 10.5% from March’s inventory, or a 2.4-month supply at the current sales pace, which is up slightly from March’s rate of 2.1 months but down year-over-year from April 2020 rate of 4.0 months. These numbers continue to represent near-record low inventory levels. In a statement prepared for the release of April’s existing home sales, Lawrence Yun, NAR’s chief economist said, “Home sales were down again in April from the prior month, as housing supply continues to fall short of demand. We’ll see more inventory come to the market later this year as further COVID-19 vaccinations are administered, and potential home sellers become more comfortable listing and showing their homes. The falling number of homeowners in mortgage forbearance will also bring about more inventory.” Yun continued, “Despite the decline, housing demand is still strong compared to one year ago, evidenced by home sales from this January to April, which are up 20% compared to 2020. The additional supply projected for the market should cool down the torrid pace of price appreciation later in the year.” The median existing-home price for all housing types in April was $341,600, up 19.1% from April 2020 ($286,800), as every region recorded price increases. This is a record high and marks 110 straight months of year-over-year gains.