Spring Homebuying Season Stalls: U.S. Existing Home Sales Hold Steady in April

The spring homebuying season, traditionally the busiest time for the U.S. housing market, showed little energy in April. According to the National Association of Realtors (NAR), sales of previously owned homes barely budged from March and were unchanged from a year earlier. Prices continued to climb, setting a new record for the month, while a modest uptick in inventory offered some relief. Here we break down the latest data and what it means for buyers and sellers.

How did existing home sales perform in April compared to March and last year?

Existing home sales edged up by just 0.2% from March to a seasonally adjusted annual rate of 4.02 million units, according to NAR. Compared with April 2023, sales were essentially flat. This stagnation extends a pattern that has persisted since 2023, with sales hovering near a 4-million annual pace—far below the historic norm of about 5.2 million. The sluggish spring season continues a multiyear slump that began in 2022 when mortgage rates started rising.

How did the actual sales figure compare to economists' expectations?

Economists surveyed by FactSet had anticipated a stronger pace of roughly 4.12 million annualized sales. The actual figure of 4.02 million came in below that forecast, underscoring the persistent weakness in the market. NAR's chief economist Lawrence Yun noted that so far this spring, there is no prediction of an increase compared to the prior year. The shortfall highlights how affordability constraints and limited inventory continue to dampen buying activity even as mortgage rates have eased slightly from recent peaks.

What is the trend in home prices, and how does it compare historically?

The U.S. median existing-home sales price rose 0.9% from April 2023 to $417,700, setting an all-time high for any April since records began in 1999. This marks the 34th consecutive month of year-over-year price increases. Although the pace of appreciation has slowed, prices remain elevated. Years of soaring home values, especially during the pandemic-era buying frenzy, have left many would-be buyers priced out. Even with a multiyear sales slump, the chronic shortage of homes for sale has propped up prices.

Why has the housing market been sluggish since 2022?

The downturn dates back to 2022, when mortgage rates began climbing from historic lows. Sales of previously owned homes hit a 30-year low in 2023 and have remained lackluster into 2024. A key factor is the sharp rise in borrowing costs: the average 30-year fixed mortgage rate ranged from about 5.98% to 6.38% during February and March, when many April closings were negotiated. While that was below year-ago levels, the subsequent increase—fueled partly by energy price spikes tied to geopolitical tensions—has kept many potential buyers on the sidelines.

How does affordability affect potential homebuyers?

Affordability remains the biggest hurdle for aspiring homeowners. While average incomes are now rising faster than home prices, the cumulative effect of years of double-digit price gains has eroded purchasing power. For example, the median sales price of $417,700 is far above what many households can afford with current mortgage rates. A chronic shortage of homes for sale—partly due to below-average new construction—has limited options, forcing buyers to compete for a slim inventory, which in turn sustains upward pressure on prices.

What is the current state of housing inventory?

Inventory improved in April, with 1.47 million unsold homes at month-end, up 5.8% from March and 1.4% from a year earlier. That is the highest April inventory since 2019, when 1.83 million homes were on the market. Still, supply remains well below the roughly 2 million homes that was typical before the COVID-19 pandemic. The modest increase provides some relief for buyers who can afford to purchase, but the overall shortage continues to support home prices and limit sales volume.

How are mortgage rates influencing the market?

Mortgage rates have been fluctuating, hovering around 6.37% recently. During the contracting period for April sales (February-March), rates ranged from 5.98% to 6.38%. While this is lower than a year ago, the volatility—exacerbated by surging energy prices amid geopolitical tensions—has injected uncertainty. Buyers are sensitive to rate swings, and the current level still significantly reduces purchasing power compared to the sub-3% rates seen in 2020-2021. NAR's Lawrence Yun suggests that until rates stabilize or drop further, the spring market is unlikely to see a meaningful rebound.