Sales of existing homes fell 1.9% in April to a 4.14-million-unit annualized pace, per the National Association of REALTORS® (NAR), though sales in March were revised higher and this offset some of the decline.
This report measures closings on existing homes in April and likely reflects people shopping for homes in February and March.
What’s the bottom line? While the pace of sales declined in April, the speed at which homes sold accelerated. Homes remained on the market for a shorter period in April, with the 26-day average down from 33 days in March. Plus, 27% of homes sold above list price. These factors both signal that demand and competition remain during this spring buying season, even in the face of elevated rates.
Inventory also saw a boost, as the 1.21 million homes available for sale at the end of April were up 9% from March and 16.3% from a year earlier. While this remains below healthy levels at just a 3.5 months’ supply at the current sales pace, rising inventory is certainly a step in the right direction to help improve ongoing tight supply.
