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The weather has warmed up despite the one-off days of freezing cold, summer plans are being finalized, and the perfect 70-degree Sunday that remained warm into the night has inspired an abundance of movers to get going with their plans and enter the housing market as buyers and sellers. Day-to-day impressions like these help set the stage for the seasonal indicators that drive the increased market activity typically seen in April.

These are what we call seasonality trends, patterns we see every year around the same time. They help explain how buyers and sellers typically behave as the housing market approaches peak sales season and offer useful insights for planning real estate strategies. Buyers and sellers can use these seasonal trends to understand the broader market as they decide how to time their home purchase or listing.

Supply & Demand

To begin with, we can look at the average number of existing-home sales in April:

  • March: 418,143
  • April: 461,762
  • May: 510,762
  • June: 552,714

Historically, we see existing-home sales rise by about 10.8% in April, representing the second largest increase of the year (just behind March). Buyers may be aware of the effect that longer, warmer days have on competition when they see open houses filling up, incentivizing them to close before prices get too high. The school year is also coming to a close, which may be motivating certain families who want their children to have the full summer vacation to adjust to a new area.

Additionally, higher home sales may be partially driven by an abundance of options due to higher inventory. Buyers with a list of desired characteristics may have had trouble finding the right fit when supply was low in the winter and early spring, leading them to close when a preferred option became available.

Let’s take a closer look at inventory to further understand supply:

  • March: 2.36 million
  • April: 2.56 million
  • May: 2.55 million
  • June: 2.57 million

April typically sees a prominent surge (8.2%) in inventory, making it the month with the highest increase in supply of all the months, on average. Listing in April will likely result in a move at the beginning of summer, which can be ideal for families who prefer to get a planned move out of the way so they can get acclimated to a new area and enjoy other plans associated with the season.

On the other hand, sellers may be motivated by the fact that May and June see the largest median price increases of the year, meaning an April listing could result in a sale at a time when they are likely to receive the best deal.

We see prices climb by 2.1% in April, a notable increase, just behind the surrounding months and June. The upward price trajectory from spring into summer slows slightly due to a substantial influx of listings, which intensifies competition among sellers to find a buyer; yet, the growing demand for homes in the warmer months drives prices higher overall.

Days on the Market: How Quickly Sellers Can Expect to Find a Buyer

Next, we will look at how many days a typical home spends on the market to see how the growing number of buyers affects the time required for a seller to find a deal in mid-spring. Historically, we see a sharp reduction in the time a home was listed following a trend beginning in early spring:

Sellers typically found a buyer eight days sooner in April, bringing the expected time on the market down to roughly one month. As mentioned above, improving weather conditions provide more leeway for buyers to view listings and inspect outdoor features, resulting in more frequent closings as buyers identify their desired home.

Buyer Characteristics: Who Is in the Market in April?

Lastly, we will look at the share of first-time and all-cash buyers to get a sense of the typical buyer in April.

The share of homes purchased by first-time home buyers jumps 1.1% in April to 32.1%. Historically, this is the only month—besides June—when the share of first-time home buyers rises above 32%, suggesting that April is a popular month for young families to enter the market. Price-sensitive families that require convenient moving conditions timed with the school year are likely present here. And while the summer may be more favorable, the relatively lower prices are likely a key driver in motivating these families to move.

In contrast, all-cash buyers saw a 0.9% decline to 22.0%. While the presence of all-cash buyers today remains much stronger than in the pre-pandemic period, the historical perspective helps shed light on the shift in recent years, mostly reflecting still-elevated borrowing costs. Regarding the decline in April, rising prices heading into the spring and summer months make real estate a more expensive entry point, even for investors, who are less sensitive to other market conditions such as weather or school year schedules. It seems that cash buyers are looking to close on a home before prices become too steep, but this demographic tends to dwindle until home prices are reduced to lower levels.

REALTORS® can expect supply to pick up in April, providing the growing number of prospective buyers with ample opportunities to find the right home. Prices are rising but remain below the summer months. Although turnover is slower today compared to pre-pandemic conditions, buyers should be made aware that desirable homes will begin to go more quickly due to the seasonal trend. Sellers, meanwhile, can be encouraged that listing a home in April may result in a higher-than-expected price due to the growing demand associated with the coming season.