Sales of previously owned homes in April were essentially flat compared with March, rising just 0.2% to 4.02 million units on a seasonally adjusted, annualized basis, according to the National Association of Realtors. Housing analysts were expecting a gain of more than 3%.
April sales were unchanged year-over-year. This count is based on closings, so contracts likely signed in late February and March. The average rate on the 30-year fixed mortgage ended March in the high 5% range, according to Mortgage News Daily, and then shot up sharply, due to the start of the U.S.-Israel war with Iran.
“Despite mixed macroeconomic signals—including a record-high stock market and historically low consumer confidence—home sales were modestly boosted by the continued improvement in housing affordability,” said Lawrence Yun, NAR’s chief economist, in a release. “Mortgage rates are lower from a year ago, and average income growth is outpacing home price gains.”
Inventory in April rose 5.8% from March, but was up just 1.4% from the previous April to a 4.4-month supply. That is still considered tight, as a 6-month supply represents a balanced market between buyer and seller.
“We really need to see 30% growth in inventory, but we are not seeing that,” Yun said. “Multiple offers, though not as intense as a few years ago, are still occurring. At the same time, days on market are lengthening on average, implying that consumers are taking their time before making decisions.”
