Home sales slipped unexpectedly in April, despite big gains in supply

Despite an increase in housing inventory, sales of previously owned homes fell unexpectedly by 1.9% in April from March, with a year-over-year decrease of 1.9% as well. The median home price rose to a record $407,600, up 5.7% from the previous year, indicating continued price pressure despite the larger supply.

Inventory levels rose by 9% month-to-month and 16% year-over-year, but still only represented a 3.5-month supply at the current sales pace, far below the balanced market standard of six months. Sales dynamics varied significantly by price segment, with homes over $1 million seeing a 40% jump in sales, while those under $100,000 fell by 7.1%.

First-time buyers accounted for 33% of sales, showing a slight increase from the previous year. Regional variations were notable, with sales declines most pronounced in the Northeast and the West experiencing the highest median price increase at 9.3% year-over-year.

The median price of an existing home sold in April was $407,600, marking a 5.7% increase from the previous year. This rise in median price represents a continuation of the upward trend in home prices, reaching another record high for the month of April4. This increase reflects ongoing market pressures, including a tight supply of available homes which has helped to keep prices elevated despite other changing market conditions.