Existing Home Sales Slip 2.5 Percent in April

Wells Fargo Research Team Wells Fargo

All of April’s 2.5 percent decline in existing home sales was in re-sales of single-family homes, which fell 3.0 percent during the month. The ongoing shortage of homes available for purchase continues to weigh on sales.

Home Sales Slip on a Lack of Inventory

After rising the past two months, existing home sales fell 2.5 percent in April to a 5.46 million unit annual pace. Sales of single-family homes fell 3.0 percent, while sales of condos and co-ops rose 1.6 percent.
While sales fell, demand is not the problem. Homes are selling quickly and prices continue to rise. The typical home remained on the market for just 26 days, down from 29 days a year ago.

Affordability Is Being Strained

Stronger job and income growth has bolstered buyer confidence and a rising share of households say they plan to purchase homes in coming months. Higher prices and rising interest rates will test buyers’ resolve.
While the months’ supply of homes available for sale rose in April, the absolute level of inventories remains 6.2 percent lower than it was one year ago and months’ supply is also lower than a year ago.

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Wells Fargo Research Team

Wells Fargo

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