Existing-home sales slid for the second consecutive month, falling 3.4% nationwide as of the last measure, according to the National Association of REALTORS® (NAR), as higher interest rates continue to impact buyer affordability. Sales are down 23% compared to the same period a year ago, while contract signings dropped 20.3% year-over-year. With sales cooling, buyers in some parts of the country have found relief in the form of declining sales prices, which are down 1.7% year-over-year nationally, although more affordable markets continue to see price gains.
New listings decreased by 13.9% for residential homes and 8.1% for townhouse/condo homes. Pending sales decreased by 12.7% for residential homes and 12.4% for townhouse/condo homes. Inventory decreased by 5.8% for residential homes and 7% for townhouse/condo homes.
Median sales price increased 3.6% to $285,000 for residential homes and 1.2% to $207,500 for townhouse/condo homes. Days on market increased 26.3% for residential homes and 28% for townhouse/condo homes. Months supply of inventory increased by 15.4% for residential homes and 18.2% for townhouse/condo homes.
While fluctuating interest rates have pushed some buyers to the sidelines, a shortage of inventory is also to blame for lower-than-average home sales this time of year, as current homeowners, many of whom locked in mortgage rates several percentage points below today’s current rates, are delaying the decision to sell until market conditions improve. With only 2.9 months’ supply heading into May, available homes are moving fast, with the typical home spending just over three weeks on the market, according to NAR.
