Existing-home sales remained largely stagnant in April, as persistently high mortgage rates continued to weigh on homebuyer demand, according to the latest report from the National Association of Realtors.
- The South saw sales hold steady at an annual rate of 1.81 million, unchanged from March but down 3.2% compared to the previous year.
- The median home price in the region ticked down by 0.1% year-over-year to $365,300. The South now accounts for 45.3% of all existing-home sales nationwide.
Regionally, April was a mixed month. While the West and Northeast posted declines of 3.9% and 2.0% respectively, the Midwest stood out as the only region with rising sales, up 2.1% from March.
- The national seasonally adjusted annual rate of existing-home sales declined slightly by 0.5% from March, reaching 4.00 million units in April.
Inventory: One of the most significant developments in April was the sharp increase in available housing inventory. Total housing stock rose to 1.45 million units, a 9.0% jump from March and a 20.8% increase compared to April 2024. This marks the highest inventory level since September 2020.
- Unsold inventory now equates to a 4.4-month supply at the current sales pace, up from 4.0 months in March.
- This is the largest supply cushion since May 2020 and suggests more negotiating power for buyers, even as sellers still retain an upper hand.
First Timer: The share of first-time home buyers rose slightly in April, accounting for 34% of sales, up from 32% in March and 33% a year earlier.
What They’re Saying: Lawrence Yun, NAR Chief Economist, noted that it is still technically a sellers market, “At the macro level, we are still in a mild seller’s market…But with the highest inventory levels in nearly five years, consumers are in a better situation to negotiate for better deals.
Bottom Line: Sales remain depressed as affordability concerns continue to be a problem for potential homeowners.
