Existing Home Sales Slide in April Amid ‘Stubbornly’ Low Supply Levels

The National Association of Realtors (NAR) said existing home sales slid 2.3% to a seasonally adjusted annual rate of 5.57 million in April, missing views. Lawrence Yun, NAR chief economist cited “stubbornly” low supply levels in nearly every region of the housing market.

“Last month’s dip in closings was somewhat expected given that there was such a strong sales increase in March at 4.2%, and new and existing inventory is not keeping up with the fast pace homes are coming off the market,” he said. “Demand is easily outstripping supply in most of the country and it’s stymieing many prospective buyers from finding a home to purchase.”

Total existing-home sales, which include completed transactions for single-family homes, townhomes, condominiums and co-ops, are still 1.6% above a year ago and at the fourth highest pace over the past year. Further, home prices are rising and the number of days on the market has been falling consistently, indicating a strengthening market.

“Last month’s dip in closings was somewhat expected given that there was such a strong sales increase in March at 4.2 percent, and new and existing inventory is not keeping up with the fast pace homes are coming off the market,” Mr. Yun added. “Demand is easily outstripping supply in most of the country and it’s stymieing many prospective buyers from finding a home to purchase.”