US existing home sales barely rise in April as spring selling season begins

Sales of previously owned homes in the US rose only marginally in April from a nine-month low, signaling continued weakness in the housing market as the key spring selling season began.

Existing-home sales rose 0.2% to 4.02 million, according to data released Monday by the National Association of Realtors (NAR) on Monday.

The figure came in slightly below market expectations.

Despite the modest monthly increase, the housing market remains under pressure from elevated mortgage rates, high asking prices and affordability constraints, which continue to keep many prospective buyers on the sidelines.

The median existing-home sales price rose 0.9% from a year earlier to $417,700 in April, marking the highest level on record for the month.

Housing inventory increased to 1.47 million units, the highest for any April since 2019, though supply remains below pre-pandemic levels.

“Even though it’s the highest inventory post-Covid, we are not close to the pre-Covid April inventory of 1.83 million,” NAR Chief Economist Lawrence Yun said.

Sales rose in the Midwest and South, while contract closings in the West fell to a three-month low.

First-time buyers accounted for 33% of purchases, slightly lower than a year earlier.

The NAR’s affordability index, which tracks whether a typical family has enough income to qualify for a mortgage on a median-priced home, has improved from last year’s lows but declined over the past two months.