ARLINGTON, Va.—Existing-home sales fell 2.7% in April to a seasonally-adjusted rate of 5.85 million units, representing a 33.9% increase in sales versus a year ago.
"Higher mortgage rates, low supply, a competitive market for buyers, and record-high prices are stifling demand, even as supply loosened slightly,” said Curt Long, NAFCU's chief economist and vice president of research. "Housing starts fell 9.5% on the month, although permits remained high.
"Builders are reportedly waiting out supply constraints for labor and lumber. Supply will remain tight for the foreseeable future, though it should start to relax by the fall as new construction comes online," continued Long. "NAFCU expects sales to remain strong for the rest of the year, only limited by availability and affordability."
Based on current sales, there was 2.4 months of supply at the end of April, up 0.3 months from March. Analysts consider six months of inventory a rough balance between supply and demand.
Sales Down in All Regions But One
Sales fell in three regions in April, with the Northeast seeing the largest drop (-3.9%), followed by the South (-3.7%), and West (-3.1%). Meanwhile, the Midwest rose 0.8%. Versus a year ago, sales were up in all regions over the month.
The median existing-home price rose from $326,300 in March to $341,600 in April (not seasonally-adjusted), representing a 19.1% increase from the median price a year ago, Long said.