An article summarized by CNBC:
Sales of existing homes in April were nearly unchanged from March, rising just 0.2% to an annualized pace of 4.02 million units, far below economists’ expectations for stronger growth. Sales were also flat compared to a year ago, showing that the housing market remains sluggish despite some improvements in affordability. Mortgage rates were lower than last year during much of the buying period, but rising geopolitical tensions later pushed rates higher again.
Housing inventory increased 5.8% from March, but supply remains historically tight at just a 4.4-month supply, well below the six months considered a balanced market. National Association of Realtors chief economist Lawrence Yun said the market still needs significantly more inventory, as multiple-offer situations continue in many areas even though homes are sitting on the market slightly longer than before.
The limited supply helped push home prices higher, with the median existing-home price reaching a record $417,700 for April, up 0.9% from a year earlier. Homes spent an average of 32 days on the market, slightly longer than last year, while first-time buyers made up 33% of purchases. Mortgage rates remain elevated above 6%, and analysts say tightening supply could continue putting upward pressure on home prices in the coming months.
