ARLINGTON, Va.—Existing-home sales decreased 2.5% in April following two months of gains.
"While inventory rose for the fourth straight month, it was not sufficient to overcome the supply-side shortage," said NAFCU Research Assistant Yun Cohen in a NAFCU Macro Data Flash report."The market remains tight and competition continues to drive prices higher.”
April's existing-home sales fell to a seasonally adjusted annual rate of 5.46 million. Sales during the month were 1.4% lower than a year ago.
Sales declined in three of the four regions during April. Sales in the Northeast decreased 4.4%, followed by the West (-3.3%) and the South (-2.9%). Sales in the Midwest were unchanged from the previous month, Cohen noted.
Based on current sales, there were four months of supply at the end of April, up from 3.5 months in March. Analysts consider six months of supply to be roughly balanced between supply and demand. Inventory rose 9.8% in April but was still 6.3% lower than a year ago. Inventory has declined year-over-year for 35 consecutive months.
"According to the [National Association of Realtors], a typical property sold in April went under contract in a record-breaking 26 days," Cohen said. "While the share of first-time buyers picked up somewhat in April, they have been particularly affected by the inventory shortage."
The median existing-home price increased from $249,800 in March to $257,900 (not seasonally adjusted) in April. This is 5.3% higher than the median price from a year ago. April marks the 74th consecutive month of year-over-year price increases, Cohen said.