Sales of previously owned homes declined in April to the lowest pace since the pandemic began, CNBC reports.
What’s happening: “Existing home sales declined 2.4% compared with March to a seasonally adjusted annualized rate of 5.61 million units, the [National Association of Realtors] said. Sales were 5.9% lower than in April 2021. That is the slowest rate since June 2020, which was artificially slow since the economy was struggling with sweeping shutdowns due to the coronavirus.”
- “This count represents closings during the month, so it reflects contracts likely signed in February and March, when mortgage rates were rising.”
- The average 30-year fixed mortgage rate is now around 5.45%.
Shortage continues: Existing home inventory at the end of April was at 1.03 million homes for sale, down 10.4% from two years ago.
- Limited supply kept prices higher. The median price of an existing home sold in April was $391,200, the highest on record.
What’s ahead: The National Association of Realtors said it expects “further declines” in existing home sales.