WASHINGTON – Pending home sales fell 7.7% in April, with contract signings retreating in all major regions of the U.S, according to the National Assn. of Realtors (NAR). Earlier this month, the NAR also reported that existing home sales fell 1.9%.
“The impact of escalating interest rates throughout April dampened home buying, even with more inventory in the market,” said NAR Chief Economist Lawrence Yun. “But the Federal Reserve’s anticipated rate cut later this year should lead to better conditions, with improved affordability and more supply.”
The Northeast saw a decline of 3.1% from April 2023., while the Midwest index dropped 8.7%. The South fell 8.2%, and the West declined 7.3%.
“Home prices are hitting record highs, but the pace of gains should decelerate with more supply,” said Yun. “However, the prospect of measurable home price declines appears minimal. The few markets experiencing price declines will be viewed as second-chance opportunities for buyers to enter the market if those regions continue to add jobs.”
Earlier this month, the NAR reported that the median existing-home sales price grew 5.7% from April 2023 to $407,600 from $385,800, the 10th consecutive month of year-over-year price gains and the highest price ever recorded for the month of April.
For homes priced $1 million or more, inventory and sales increased by 34% and 40%, respectively, from a year ago. The inventory of unsold existing homes rose 9% from one month ago to 1.21 million at the end of April, the equivalent of 3.5 months’ supply at the current monthly sales pace, NAR said.