Existing home sales decline another 2.7 percent in April

Sales slowed for the third straight month as low inventory again pushed prices to record highs

National /
May.May 21, 2021 06:52 PM
(Getty)

(Getty)

Nationwide home sales slowed again in April as prices continued climbing amid scarce inventory.

Existing home sales dropped 2.7 percent in April to a seasonally adjusted rate of 5.85 million, down from 6.01 million in March, according to a monthly report released by the National Association of Realtors’ Friday.

April marks the third consecutive month-over-month decline in the pace of sales, though the pace was still up nearly 34 percent over April 2020, when the country was largely locked down.

Lawrence Yun, NAR’s chief economist, attributed the drop to low housing inventory, which has in turn driven up prices for the 110th consecutive month.

The median home price in April was $341,600, up 19 percent from $286,800 a year ago.

Total housing inventory at the end of the month was 1.16 million units, the equivalent of 2.4 months of supply at the current pace of sales. That’s up 10.5 percent from March, when there were 1.07 million units on the market, but down 20.5 percent from April 2020’s supply of 1.46 million units.

“We’ll see more inventory come to the market later this year as further COVID-19 vaccinations are administered and potential home sellers become more comfortable listing and showing their homes,” said Yun in a statement, noting that decreases in the number of homeowners in mortgage forbearance will also create more inventory.

Forbearance plans are slated to expire for some 830,000 homeowners in June, according to mortgage data firm Black Knight.

But Joel Kan, head of forecasting at the Mortgage Bankers Association, cautioned not to expect the low supply of homes to improve in the short-term.

“U.S. Census Bureau data from earlier this week showed residential housing starts have started to slow due to challenges in the cost and availability of building materials,” he said.

The number of all-cash purchases represented 25 percent of deals last month, up from 15 percent in April.





    Related Articles

    arrow_forward_ios
    From left: Mathew Chapman, Michele Kowal, Maryanne Elsaesser and Rhonda Battifarano (NJ Home Navigators)
    Christie’s NJ affiliate claims “big win” in agent-poaching dispute with Compass
    Christie’s NJ affiliate claims “big win” in agent-poaching dispute with Compass
     Adam Neumann (Getty, Bal Harbour Florida)
    Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
    Ex-WeWork CEO Adam Neumann inks $44M deal for Bal Harbour properties
    (Getty)
    Housing rush: In-person school adds fire to rapidly heating market
    Housing rush: In-person school adds fire to rapidly heating market
    Ahmass Fakahany and the Police Building at 240 Centre Street (Douglas Elliman, Altamarea Group)
    Domed Police Building penthouse finally sells after massive price cut
    Domed Police Building penthouse finally sells after massive price cut
    From left: Alvin Dworman, 155 East 55th Street, 65 West 55th Street, and 210 East 58th Street (Getty, Google Maps)
    Alvin Dworman Sells 3 Manhattan Buildings for $65M
    Alvin Dworman Sells 3 Manhattan Buildings for $65M
    40 Meadow Lane, Southampton
    New Hamptons sales and listings promise ocean views… and eternal life
    New Hamptons sales and listings promise ocean views… and eternal life
    (iStock/Illustration by Kevin Rebong for The Real Deal)
    New housing construction leaves US 5.5 million units short
    New housing construction leaves US 5.5 million units short
    (Illustration by Kevin Rebong for The Real Deal)
    Single-family rent growth more than doubles in April
    Single-family rent growth more than doubles in April
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...