US Existing-Home Sales Slow to Lowest Level Since October 2024

On Monday, Redfin reported that sales of existing US homes fell to a seasonally adjusted annual rate (SAAR) of 4,196,707 in April, the lowest level since October 2024. That is down 0.2% month-over-month and 1.1% year-over-year, marking the first annual decline in seven months.

Pending sales, which include both existing and new homes and provide a more current market indicator, fell 3.5% month-over-month—the steepest decline since August 2023—and dropped 2.7% year-over-year.

Redfin attributes sluggish demand to rising home costs and economic uncertainty. The median home sale price rose 1.4% year-over-year to $438,466 in April. Although this is the slowest price growth in nearly two years, monthly housing payments have hit a record high due to elevated mortgage rates and prices. The average 30-year fixed mortgage rate was 6.73% in April (up from 6.65% in March), more than double the pandemic-era low but down from 6.99% in April 2024.

Active listings—the total number of homes for sale—reached their highest level since March 2020, rising 1.2% month-over-month and 16.7% year-over-year.

New listings also increased, hitting their highest level since July 2022. They rose 1.3% month-over-month (seasonally adjusted) and 8.6% year-over-year—the largest annual gain since May 2024.

Finally, the typical home going under contract in April spent 40 days on the market, the slowest April since 2019. This compares to 35 days a year earlier and just 18 days during the pandemic buying surge. Redfin agents note that overpriced homes are lingering, leading to a buildup of stale listings. When homes sit too long, sellers often accept less than their asking price.