Total existing home sales—including single-family homes, townhomes, condominiums, and co-ops—entered a third consecutive month of declines in April, according to the National Association of Realtors. Month-to-month sales fell 2.7% to 5.85 million, and all but one of the four major U.S. regions saw sales fall over the same period. On a year-over-year basis, sales have risen 33.9% from April 2020.
“Home sales were down again in April from the prior month, as housing supply continues to fall short of demand,” says Lawrence Yun, NAR’s chief economist. “We’ll see more inventory come to the market later this year as further COVID-19 vaccinations are administered and potential home sellers become more comfortable listing and showing their homes. The falling number of homeowners in mortgage forbearance will also bring about more inventory.”
Total housing inventory was 1.16 million units at the end of April, up 10.5% from March and down 20.5% from one year ago. Properties typically remained on the market for 17 days, down from 27 days in April 2020.
“Despite the decline, housing demand is still strong compared to one year ago, evidenced by home sales from this January to April, which are up 20% compared to 2020,” Yun says. “The additional supply projected for the market should cool down the torrid pace of price appreciation later in the year.”
The median existing home price across all housing types was $341,600 in April, up 19.1% from one year ago. This is a record high and marks 110 straight months of YOY gains.
Single-family home sales fell to a seasonally adjusted annual rate of 5.13 million in April, down 3.2% from 5.3 million in March and up 28.9% from one year ago. The median existing single-family home price was $347,400, up 20.3% from one year ago.
At the regional level, only the Midwest experienced higher sales month to month, up 0.8% to an annual rate of 1.29 million in April, a 13.2% increase from one year ago. In the Northeast, sales fell 3.9% month to month but rose 34.0% year over year. Sales fell 3.7% month to month in the South, up 39% from one year ago, and fell 3.1% month to month in the West, up 53.8% from one year ago.
“The economy and job market is recovering, but the 2.7% decline in existing-home sales in April is another indication that the housing inventory shortage continues to restrain sales growth. The 2.3 months of supply was a slight improvement compared to March, but remains close to historic lows. The insufficient level of inventory amid fierce competition is putting upward pressure on home prices in most parts of the country,” says Joel Kan, associate vice president of economic and industry forecasting at the Mortgage Bankers Association. “… In the short term, inventory shortages will persist. U.S. Census Bureau data from earlier this week showed residential housing starts have started to slow due to challenges in the cost and availability of building materials.”
