Existing Home Sales Decline

Sales of previously owned homes declined in April to the lowest pace since the pandemic began, CNBC reports.

What’s happening: “Existing home sales declined 2.4% compared with March to a seasonally adjusted annualized rate of 5.61 million units, the [National Association of Realtors] said. Sales were 5.9% lower than in April 2021. That is the slowest rate since June 2020, which was artificially slow since the economy was struggling with sweeping shutdowns due to the coronavirus.”

“This count represents closings during the month, so it reflects contracts likely signed in February and March, when mortgage rates were rising.”
The average 30-year fixed mortgage rate is now around 5.45%.

Shortage continues: Existing home inventory at the end of April was at 1.03 million homes for sale, down 10.4% from two years ago.

Limited supply kept prices higher. The median price of an existing home sold in April was $391,200, the highest on record.

What’s ahead: The National Association of Realtors said it expects “further declines” in existing home sales.