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Existing Home Sales Edge Up 0.2% in April, Inventory Remains Tight

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Existing Home Sales Edge Up in April, but Miss Expectations

Sales rose 0.2% month-over-month, while median home prices hit a record high for April.

April Market Snapshot

Existing home sales (completed transactions) rose 0.2% in April compared to March, reaching a seasonally adjusted annualized rate of 4.02 million units, according to the National Association of Realtors (NAR).

The figure fell short of analyst expectations, who had forecast a gain of over 3%.

Year-over-year, sales were unchanged.

Meanwhile, the median existing-home price in April was $417,700 — up 0.9% from April 2025 and marking the highest April price on NAR record.

Inventory and Market Balance

Housing inventory increased 5.8% from March but was up only 1.4% year-over-year. This represents a 4.4-month supply at the current sales pace — below the 6-month threshold typically considered a balanced market.

Lawrence Yun, NAR's chief economist: "We really need to see 30% growth in inventory, but we are not seeing that. Multiple offers, though not as intense as a few years ago, are still occurring."

The average days on market rose to 32 days, up from 29 days a year ago. Yun added that "days on market are lengthening on average, implying that consumers are taking their time before making decisions."

Buyer Profile

  • First-time buyers accounted for 33% of sales, down slightly from April 2025
  • All-cash sales comprised 25%, unchanged year-over-year

Mortgage Rate Context

April closings likely reflect contracts signed in late February and March, when the average 30-year fixed mortgage rate was in the high 5% range, according to Mortgage News Daily. Rates subsequently rose sharply after the start of the U.S.-Israel war with Iran.

As of early May, mortgage rates stood at 6.42%.

Economist's Take

Despite mixed macroeconomic signals — including a record-high stock market and historically low consumer confidence — home sales were modestly boosted by improved housing affordability, according to Lawrence Yun, NAR's chief economist.

"Mortgage rates are lower from a year ago, and average income growth is outpacing home price gains," Yun stated.