Photo: AdobeStock / BillionPhotos.com
According to the National Association of Realtors (NAR), existing-home sales declined in April in every sales region in the country; both month-over-month and year-over-year sales were impacted. Recent home sales appear to be variable and moving in different directions, but according to Lawrence Yun, chief economist for the NAR, sales continue to remain above recent cyclical lows: “The combination of job gains, limited inventory, and fluctuating mortgage rates over the last several months have created an environment of push-pull housing demand.”
Prices Fall in Some Areas
Home prices took a slight tumble in April, with median existing-home sales dropping 1.7% year over year. Yet half the country still experienced price gains, with home prices climbing in the Northeast and Midwest. “Even in markets with lower prices,” said Yun, “primarily the expensive West region, multiple-offer situations have returned in the spring buying season following the calmer winter market.” A typical property remained available for sale for 22 days in April, down from 29 days a month ago but up from only 17 days a year ago. Of all the homes sold in April 2023, 73% were available for sale for under 30 days.
Inventory Gains
By the end of April, the total housing inventory reached 1.04 million units, up 7.2% from March and 1% from April 2022. This current level of unsold inventory would supply the market for 2.9 months, up from a 2.6-month supply in March and a 2.2-month supply in April 2022.
More First-Time Buyers
The number of first-time buyers entering the housing market increased in April, with first-timers accounting for 29% of all transactions. This was up from 28% both a month ago and a year ago. According to the NAR “2022 Profile of Home Buyers and Sellers,” the annual share of first-time buyers was 26%—the lowest on record. All-cash sales, meanwhile, accounted for 28% of April sales, up from 27% in March and 26% in April 2022. Individual investors and second-home buyers, the two groups who account for most all-cash sales, were responsible for 17% of home purchases in April, unchanged from both a month ago and a year ago. Distressed sales, including foreclosures and short sales, represented just 1% of sales in April and were also unchanged from March and a year ago.
Regional Breakdown
Northeast: Existing-home sales annual rate of 510,000; a decrease of 1.9% from March 2023 and 23.9% from April 2022. The median sales price of $422,700 represented a 2.8% increase from April 2022.
Midwest: Existing-home sales annual rate of 1.02 million; a decrease of 1.9% from March 2023 and 21.5% from April 2022. The median sales price of $287,300 represented a 1.8% increase from April 2022.
South: Existing-home sales annual rate of 1.98 million; a decrease of 3.4% from March 2023 and 20.2% from April 2022. The median sales price of $357,900 represented a 0.6% decrease from April 2022.
West: Existing-home sales annual rate of 770,000; a decrease of 6.1% from March 2023 and 31.3% percent from April 2022. The median sales price of $578,200 represented an 8% decrease from April 2022.
