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April Existing Home Sales: Home Sales Continue to Slip Amid Inventory Shortage

Sep 15, 2023

4.28 million existing homes were sold in April (SAAR), down 3.4% from March and down 23.2% from April 2022, according to the National Association of Realtors (NAR).

Total housing inventory at the end of April amounted to 1.04 million units, NAR said, totaling 2.9 months of supply at the current sales pace.

The median existing-home price for all housing types in April was $338,800, down 1.7% from April 2022

What happened: Existing home sales declined again in April continuing a 21 month trend of annual declines in sales.

Why it matters: Despite a major monthly jump in sales earlier this year as the spring home shopping season made its debut, existing home sales are back to sliding back down – largely due to strapped inventory.

What Zillow Senior Economist Nicole Bachaud thinks: While it's true that there are fewer buyers who can afford to compete in today's housing market, a key piece of the story is that there are fewer homes for those buyers to shop for. The severe lack of new inventory coming onto the market is restricting home sales more so than the pull back in demand. And as mortgage rates are staying high and experiencing a degree of volatility, existing homeowners are feeling locked in to their low rates and monthly payments. This tension will continue to limit inventory and thus suppress sales. As inventory remains a challenge in this market, home prices will experience upward pressure and affordability will remain a hurdle for buyers and sellers alike. Home builders are experiencing a renewed sense of confidence in the market given the lack of existing homes, so as spring turns to summer, hopefully the new construction market can step up and fill the gap in inventory.

The post April Existing Home Sales: Home Sales Continue to Slip Amid Inventory Shortage appeared first on Zillow Research.