April Home Sales Edge Up 0.2% but Miss Forecasts on High Rates

Homebuyers stayed on the sidelines in April as mortgage rates hovered near 6.4 percent and the costs of the U.S.-Israel conflict with Iran added fresh uncertainty to the economy. Existing-home sales rose just 0.2 percent from March to a seasonally adjusted annual rate of 4.02 million units, according to the National Association of Realtors, falling short of economist expectations that ranged from 4.05 million to 4.12 million. Sales matched the level recorded a year earlier and have remained near a 4 million annual pace since 2023, well below the long-term average near 5.2 million.

The figures reflect contracts signed in late February and March, when 30-year fixed rates moved between 5.98 percent and 6.38 percent before climbing again after the conflict began. NAR chief economist Lawrence Yun noted that rates remain below year-ago levels and that income growth has outpaced price gains, providing a modest lift to affordability. Inventory rose 5.8 percent from March to 1.47 million homes, the highest April level since 2019, yet still produced only a 4.4-month supply at the current sales pace. A balanced market typically requires five to six months of supply.

Median sales price reached $417,700, up 0.9 percent from April 2023 and the highest April figure on record. Homes took an average of 32 days to sell, three days longer than a year earlier. First-time buyers accounted for 33 percent of purchases, while cash buyers represented one-quarter of transactions. Yun said the market needs roughly 30 percent more inventory growth to ease pressure on prices, which have now risen on an annual basis for 34 straight months.