April existing home sales were down 2.4% from March.
The sales of 5.61 million, however, were slightly higher than the expected 5.6 million. According to the National Association of Realtors, higher home prices and higher mortgage rates have negatively impacted buyer activity.
Housing inventory is up 10.8% from March to 2.2% this month but is still 10.4% lower than a year ago. We’re seeing supply slowly increasing.
Sales of new homes were significantly lower than expected in April. Only 591,000 new homes were sold compared to the expectation of 750,000. In March, 709,000 were sold.
The month-over-month drop of 16.6% is the biggest decrease since 2013. However, the decrease in housing sales has not led to a decline in home prices. Home prices are still high with the median price in April at $450,600. This is a 19.6% increase from a year ago. The average sales price is $570,300.