Key facts
- Existing home sales dropped 2.4% in April to 5.61 million units, the lowest since June 2020.
- Single-family home sales reached a 22-month low, reversing post-pandemic gains.
- The supply of homes on the market increased but remains critically low at 2.2 months.
- The median existing home price hit a record $391,200, up 4.4% from March.
- Housing affordability has significantly declined due to price increases and higher interest rates.
Existing home sales in the U.S. fell 2.4% in April to a seasonally adjusted annual rate of 5.61 million units, marking the lowest level since June 2020, according to data from the National Association of Realtors (NAR).
Single-family home sales experienced a 2.5% decline to 4.99 million units, reaching a 22-month low and reversing all post-pandemic gains. Sales of condos and co-ops also weakened by 1.6% to 620,000 units, the lowest since July 2020.
Home sales have deteriorated across all regions of the country in the past three months. While the Northeast and Midwest saw slight month-over-month increases, sales in both regions remain significantly down from January levels. The South and West experienced notable declines in April.
The number of existing homes available on the market increased by 10.8% to 1.03 million units, though the year-over-year supply was still 10.4% lower. The months' supply of homes remains critically low at 2.2 months at the current selling rate, compared to approximately 4.0 months in the pre-pandemic years.
Despite the drop in sales volume, the median price of an existing home rose 4.4% to a record $391,200 in April, with gains observed across all major regions. The average existing home price increased 2.9% to $397,600.
The combination of soaring home prices and rising interest rates has severely impacted housing affordability. NAR calculates that the qualifying income for a new home has increased by 20.9% since the start of the year to $72,096, contributing to the sharp decline in sales.