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Housing

US Home Sales Unexpectedly Slow in April Amid Sluggish Market

Strategic Insights

— 2 min read

The US existing home sales market continued its three-year trend of falling short of pre-pandemic levels, with sales decreasing unexpectedly last month. The National Association of Realtors reported a 0.5% monthly decline to a seasonally adjusted annual rate of 4.00 million in April, below the expected 2.0% increase to 4.10 million. The median sales price reached an all-time high for April, with a 1.8% year-over-year increase to USD414,000, marking the 22nd consecutive month of year-over-year price growth.

Key Takeaways:

  • US existing home sales declined 0.5% on a monthly basis in April to a seasonally adjusted annual rate of 4.00 million, falling short of the expected 2.0% increase to 4.10 million.
  • The median existing home sales price reached an all-time high for April, with a 1.8% year-over-year increase to USD414,000.
  • This marked the 22nd consecutive month of year-over-year price growth, according to the National Association of Realtors.
  • Home sales have been at 75% of normal or pre-pandemic activity for the past three years, despite the addition of seven million jobs to the economy, said NAR Chief Economist Lawrence Yun.
  • The total housing inventory at the end of April increased to 1.45 million units, up 9.0% on-month and 21% from a year ago.
  • Yun noted that the macro level remains in a mild seller's market, but with the highest inventory levels in nearly five years, consumers are in a better position to negotiate for better deals.

Statistics:

  • 4.00 million: seasonally adjusted annual rate of existing home sales in April.
  • 0.5%: monthly decline in existing home sales in April.
  • 2.0%: expected increase in existing home sales in April, according to FXStreet.
  • 4.02 million: existing home sales in March.
  • 4.08 million: existing home sales a year ago in April.
  • 1.8%: year-over-year increase in median existing home sales price in April.
  • USD414,000: median existing home sales price in April.
  • 22: consecutive months of year-over-year price growth.
  • 75%: percent of normal or pre-pandemic activity that home sales have been at for the past three years.
  • 7,000,000: jobs added to the economy, as per Lawrence Yun.
  • 1.45 million: total housing inventory at the end of April.
  • 9.0%: on-month increase in total housing inventory.
  • 21%: year-over-year increase in total housing inventory.

Sources:

  • National Association of Realtors (NAR)
  • FXStreet
  • Michael Hennessey, Alliance News reporter
  • Alliance News

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