Home sales fell for the second straight month in April, dropping to their slowest pace for the month since the global financial crisis more than 15 years ago.
Existing-home sales slipped 0.5% from March to a seasonally adjusted annual rate of four million homes, the National Association of REALTORS (NAR) said on Thursday, May 22. The median price for an existing home rose to $414,000, setting a new April record and marking the 22nd straight month of annual price increases.
Sales hit their slowest April pace since 2009, CNBC reported. They were down 2.0% from April 2024, despite housing economists expecting a 2.7% increase.
The data reflects contracts likely signed in February and March, before mortgage rates jumped again in April.
"Home sales have been at 75% of normal or pre-pandemic activity for the past three years, even with seven million jobs added to the economy," NAR chief economist Lawrence Yun said. "Pent-up housing demand continues to grow, though not realized. Any meaningful decline in mortgage rates will help release this demand."
In the Northeast, home sales dropped 2.0% from March to an annual rate of 480,000 - unchanged from April 2024. The region's median price surged 6.3% to $487,400.
Nationwide inventory also jumped 9.0% from March to 1.45 million homes for sale.
"At the macro level, we are still in a mild seller's market," said Yun. "But with the highest inventory levels in nearly five years, consumers are in a better situation to negotiate for better deals."
April's real estate slowdown echoes a warning from homebuilders about slower spring sales, fueled by President Donald Trump's sweeping tariffs. Experts have warned that the duties will raise prices on many raw materials needed to construct houses.
Builder confidence in May plunged to 34, the worst reading since December 2022 on the National Association of Home Builders/Wells Fargo Housing Market Index. A score below 50 means more builders see conditions as poor than good.
The NAR also said first-time buyers accounted for 34% of April sales, up 2% from March.