Home sales hardly change in April as the spring buying season begins on a disappointing note.

U.S. Home Sales Stagnate in April

In April, existing home sales in the U.S. showed minimal change, reflecting a lackluster trend during what is usually the peak season for real estate.

According to the National Association of Realtors, home sales experienced a slight increase of 0.2% from March, reaching a seasonally adjusted annual rate of 4.02 million units. However, sales remained unchanged compared to April of the previous year.

This latest data fell short of the anticipated pace of 4.12 million units, as predicted by economists at FactSet.

Fast-forwarding to 2023, annual sales are hovering just below 4 million units, significantly trailing historical norms of around 5.2 million.

Meanwhile, home prices continued on an upward trend across the nation last month, even if the rate of increase has slowed. The median sales price for homes rose 0.9% from the same month last year, hitting $417,700—marking the highest level for April since the data began in 1999. Prices have been climbing for 34 consecutive months on an annual basis.

The housing market has struggled since 2022, beginning with the rise in mortgage rates from the lows seen during the pandemic. Sales of previously occupied homes remained stagnant last year, reaching a 30-year low. This year has followed a similar sluggish pattern, showing year-on-year declines in the first quarter.

“This spring home-buying season, through April, we don’t expect much change compared to last year,” remarked Lawrence Yun, chief economist at NAR.

According to Freddie Mac, homes bought last month were likely under contract in February and March, during which average interest rates on 30-year mortgages fluctuated between 5.98% and 6.38%. Recently, the average rate hovered around 6.37%.

While average interest rates are still lower than they were a year ago, they’ve seen variability—partly due to rising energy prices associated with ongoing geopolitical tensions.

Inventory levels in the housing market remain significantly below historical standards. However, buyers with the means are enjoying access to a greater number of properties.

NAR reported that there were approximately 1.47 million unsold homes at the end of April, marking a 5.8% rise from March and a 1.4% increase from April last year. This is the highest inventory for April since 2019, when it peaked at 1.83 million.

Nevertheless, this figure still trails the typical pre-pandemic sales levels of about 2 million units.

The inventory at the end of April would cover 4.4 months of supply based on the current sales pace. Generally, a balanced market is seen with about five to six months of inventory.