Existing-Home Sales in the South Fell for the 2nd Straight Month
Existing-home sales in the South fell for the second straight month in April, according to the latest data from the National Association of Realtors (NAR). Sales dropped to an annual rate of 1.9 million, down 1.6% from March.
By The Numbers: The South continues to dominate the market, accounting for 46% of all existing-home sales in the country, which fell 1.9% overall to a seasonally adjusted annual rate of 4.14 million in April.
- Sales declined across all four regions:
- Northeast: Fell 4%.
- West: Dipped 2.6%.
- Midwest: Saw the smallest decline, down 1.0%.
Price Check: The median price in the South rose to $366,200, up 3.7% year-over-year. This is the smallest annual gain among the four regions.
- West: Median price increased 9.3% to $629,600.
- Northeast: Up 8.5% to $458,500.
- Midwest: Rose 6% to $303,600.
Inventory Rising: Total housing inventory at the end of April was 1.21 million units, up 9% from March and the highest level since October 2022.
- Unsold inventory represents a 3.5-month supply at the current sales pace, up from 3.2 months in March, reaching the highest level since October 2023.
Who’s buying: Despite affordability issues, first-time buyers rose to 33% of sales in April, up from 32% in March and significantly higher than the 29% reported in April 2023.
- All-cash sales accounted for 28% of transactions, consistent with March and the same period last year.
What They’re Saying: Lawrence Yun, Chief Economist at NAR, commented, “Home prices reaching a record high for the month of April is very good news for homeowners. However, the pace of price increases should taper off since more housing inventory is becoming available.”
The big picture: Rising inventory could provide some relief for potential homebuyers facing high prices and limited options. While the South remains a significant player in the housing market, the overall decline in sales across all regions highlights the ongoing challenges in the housing market.
