U.S. Existing Home Sales Fall 0.5% in April Amid Record Prices, Rising Inventory

U.S. existing home sales unexpectedly declined by 0.5% in April to a seasonally adjusted annual rate of 4.00 million units, marking the slowest April sales pace since 2009 and falling short of economists' forecasts. Despite the sales dip, the median existing-home price rose 1.8% year-over-year to a record $414,000, reflecting persistent demand, while housing inventory increased significantly by 9.0% from the previous month and 20.8% from a year ago, reaching the highest levels in nearly five years. The supply surge has created a mild seller's market but improved negotiating power for buyers, according to NAR Chief Economist Lawrence Yun, who noted that home sales have remained at about 75% of pre-pandemic levels despite strong job growth. Regional trends varied, with sales declining in the Northeast and West but rising in the Midwest and holding steady in the South. First-time buyers accounted for 34% of sales in April, indicating some positive momentum in that segment. The housing market's sluggish performance amid rising mortgage rates and economic uncertainties suggests that a meaningful drop in mortgage rates might be necessary to unlock pent-up demand and stabilize sales.