US home sales fell in April, with existing homes selling for a median price of $414,000 – the highest on record for the month. The slowest pace since 2009, sales declined 0.5% from March and 2% from last year, despite seven million jobs being added to the economy.
According to Lawrence Yun, NAR’s chief economist, home sales have been at 75% of normal activity for three years. However, pent-up demand continues to grow as inventory jumped 9% month over month, reaching a 4.4-month supply – the highest in five years.
The high interest rates and low consumer confidence are contributing to the struggling spring housing market. The median price gain is just 1.8% year over year, down from annual gains of 10-15% last year.
While some regions saw higher prices, others experienced decreases. Cancellation rates rose to 7%, indicating that consumers are more cautious about committing to purchases. Despite this, first-time buyers still accounted for 34% of sales.
Activity is stronger on the high-end market, with sales rising nearly 6% from last year. However, Yun notes that these gains are narrowing due to the recent stock market fluctuations. The National Association of Realtors expects more meaningful declines in mortgage rates to release pent-up demand and stabilize the market.
Source: https://www.cnbc.com/2025/05/22/april-home-sales-real-estate.html