Existing Home Sales in U.S. Rise More Than Median Forecast

The National Association of Realtors reported on Friday U.S. existing sales single-family homes rose 1.7% in April to an annualized rate of 5.45 million units. The expectation was for 5.40 million units.

“Primarily driven by a convincing jump in the Midwest, where home prices are most affordable, sales activity overall was at a healthy pace last month as very low mortgage rates and modest seasonal inventory gains encouraged more households to search for and close on a home,” Lawrence Yun, NAR chief economist. “Except for in the West–where supply shortages and stark price growth are hampering buyers the most–sales are meaningfully higher than a year ago in much of the country.”

A big surge in existing home sales in the Midwest region and a smaller increase in the Northeast offset declines in the South and West.

“The temporary relief from mortgage rates currently near three-year lows has helped preserve housing affordability this spring, but there’s growing concern a number of buyers will be unable to find homes at affordable prices if wages don’t rise and price growth doesn’t slow,” adds Yun.