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

Sales of previously owned homes showed little movement in April, rising a mere 0.2 percent from March to a seasonally adjusted annual rate of 4.02 million units, according to data from the National Association of Realtors. The figure matched the pace from April a year earlier and fell short of economist expectations for growth above 3 percent. Contracts signed in late February and March, when 30-year fixed mortgage rates hovered between 5.98 percent and 6.38 percent, produced the closings counted last month.

The market has now lingered near a 4 million annual pace since 2023, well below the long-term average near 5.2 million. Lawrence Yun, the NAR chief economist, noted that rates remain lower than they were a year ago and that income growth has outpaced price increases in some segments. Yet he added that inventory would need to expand by roughly 30 percent to ease conditions meaningfully. Instead, listings rose only 5.8 percent from March and 1.4 percent from the prior April, leaving a 4.4-month supply that remains below the six-month threshold for a balanced market.

Median home prices continued their climb despite the sluggish volume. The April median reached $417,700, up 0.9 percent from the year before and marking the highest April reading in the NAR series that dates to 1999. Prices have now risen on an annual basis for 34 consecutive months. Days on market lengthened to 32 from 29 a year earlier, suggesting buyers are taking longer to commit amid limited choices and elevated financing costs.

Multiple offers persist in some areas, though they occur with less intensity than during the pandemic surge. Yun pointed to mixed signals in the broader economy, including record stock market levels alongside weak consumer confidence. The housing sector has remained constrained since rates began rising from pandemic lows in 2022, with sales stuck at a 30-year low last year and showing no meaningful rebound through the first four months of this year.

Analysts attribute part of the inventory shortfall to homeowners reluctant to sell and give up low-rate mortgages locked in earlier. At the same time, new construction has not kept pace with household formation in many regions, leaving fewer entry points for buyers. The combination keeps upward pressure on prices even as transaction counts remain depressed.

This spring season has so far produced no visible improvement over last year. With mortgage rates sensitive to broader credit conditions and policy decisions, further relief for buyers would require either lower rates or a sustained increase in available homes. Neither has materialized in sufficient volume to shift the market from its current plateau.