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Sales of previously owned homes fell 1.9% in April from March to 4.14 million units, on a seasonally adjusted annualized basis, according to the National Association of REALTORS®. Sales were also down from April 2023, off 1.9% from last year. These sales are based on closings, so contracts likely signed in February and March.
Mortgage rates jumped at the start of February and then held around 7% for the next two months before moving even higher in April. “When we see these mortgage rates, which is a 300-basis point increase from pre-COVID pace, we are in a new territory as to how the lock-in effect will restrain home sales,” said Lawrence Yun, chief economist for the REALTORS®.
The median price of an existing home sold in April was $407,600, an increase of 5.7% year over year. That is another record high price for April. With multiple offers, due to strong demand, 27% of homes sold above list price. “Home prices reaching a record high for the month of April is very good news for homeowners,” said Yun. “However, the pace of price increases should taper off since more housing inventory is becoming available.”