April Existing Home Sales Decline, Slowest Pace Since 2009

April Existing Home Sales Decline

• 📉 Existing home sales in April fell 0.5% to a seasonally adjusted annualized rate of 4 million units.
• ⚠️ This represents a 2% decrease from April of last year and the slowest April sales pace since 2009.
• 🎯 The street was expecting a gain of 2.7%, making this a surprise drop.

Housing Market Inventory and Supply

• ⬆️ Inventory jumped 9% month-to-month and nearly 21% from a year ago.
• 📦 At the end of April, there were 1.45 million homes for sale, representing a 4.4 month supply.
• ⏳ This is the highest supply in 5 years, indicating a shift in market dynamics.

Home Prices and Market Trends

• 💰 The median price of an existing home sold in April was $414,000, up 1.8% year-over-year.
• 📉 Both the South and West regions saw prices fall.
• ⏳ Homes were on the market for an average of 29 days, which is longer than April of last year.

Buyer Demographics and High-End Market Activity

• 👨‍👩‍👧‍👦 First-time buyers accounted for a surprising 34% of sales, showing a gain.
• 💎 Activity was stronger on the higher end, with sales of homes priced over $1 million up nearly 6% from a year ago.
• 📉 Conversely, sales of homes priced below $250K dropped over 4%.

Cancellation Rates and Market Indicators

• ⚠️ The cancellation rate in April was nearly twice what it normally is.
• 📉 This may be due to the recent drop in the stock market, according to the realtor's chief economist.