April Home Sales Slowest Since 2009 Amid Rising Mortgage Rates and Inventory

Housing Market Slowdown

• 📉 April home sales experienced the slowest pace since 2009, reflecting contract activity from February and March.
• ⚠️ The cancellation rate on contracts nearly doubled in April compared to March, indicating a cooling market.

Mortgage Rates and Market Conditions

• 📈 30-year fixed mortgage rates have surpassed 7%, contributing to the challenging spring market.
• 🗓️ The current market conditions are described as the toughest spring market in several decades.

Rising Home Inventory

• 📦 Inventory of homes for sale saw a significant jump of nearly 21% year-over-year, reaching a five-year high nationally.
• 🏠 This increase in supply is attributed to the low volume of sales.

Price Trends and Regional Variations

• 💰 The median price of an existing home rose by only 1.8% year-over-year to $414,000, the smallest annual gain since July 2023.
• 📉 Both the South and West regions experienced falling home prices.

Market Segment Performance

• ⬆️ Sales activity is stronger for homes priced over $250,000, while sales below this threshold are declining.
• 📉 Even the gains in the higher-end market are shrinking, with realtors attributing this to the stock market's performance.