Existing Home Sales dip in April
Summary
Some positive developments for buyers, but affordability conditions remain unfavorable
Existing home sales slipped 0.5% in April, marking the third decline in the last four months. This downward streak is emblematic of the affordability issues plaguing the housing market. Although mortgage rates dipped slightly in the months preceding April sales, they remained elevated above 6.5%, presenting a challenge for homebuyers. Rates have since moved even higher, surpassing 7.0% according to Mortgage News Daily. Ongoing price appreciation is an added challenge. However, April’s 1.7% annual increase in single-family resale prices marked the slowest pace of price appreciation since July 2023. All told, softer price appreciation and growing resale inventories are positive developments. However, inventories remain scarce compared to pre-pandemic levels, and unfavorable affordability conditions will likely prevent a meaningful resale recovery in the near-term.
Author
Wells Fargo Research Team
Wells Fargo
