Inventory of Existing Homes For Sale Down -9% Year-Over-Year in April—Smallest Drop Since March of 2020

According to Redfin, the Seattle-based, technology powered real estate brokerage firm, the housing market inventory crunch in April showed signs of easing. The -9% year-over-year decline in homes for sale was the smallest since March of 2020 and the first single-digit drop since the start of the pandemic.

The Redfin report notes that while inventory remained at a record low, it fell at a relatively slow pace because soaring mortgage rates tempered homebuyer demand. Home sales slid -8%, the biggest drop since June 2020, which allowed white-hot home-price growth to cool slightly. The median home-sale price rose 16% to $424,000, a slowdown from March’s 17% gain.

In a statement prepared for the release of the report, Taylor Marr, Redfin’s deputy chief economist, said:

“When market conditions are changing it becomes more difficult for homebuyers and sellers to see eye-to-eye on pricing. Many sellers are still seeking sky-high prices for their homes even though rising mortgage rates have limited homebuyer budgets. As a result, buyers are backing off, which is causing home sales to fall and the housing shortage to ease. As demand continues to soften, more sellers will likely be forced to drop their prices in order to get offers. The good news is that this should finally bring more balance to the market.”