Steel Markets

Existing Home Sales Show Slight Decline in April

Written by Sandy Williams


Existing-home sales declined slightly from March to April, slipping 0.4 percent to a seasonally adjusted annual rate of 5.19 million. Sales were down 4.4 percent from April 2018, said the National Association of Realtors.

Lawrence Yun, NAR’s chief economist, said he is not overly concerned about the dip in sales and expects moderate growth very soon. “First, we are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions,” he said. “Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales.”

The median existing-home price in April increased 3.6 percent from a year ago to $267,300, marking the 86th straight month of year-over-year gains.

April inventory increased 9.6 percent from March to 1.83 million homes for sale and grew 1.7 percent from a year ago. Inventory is at a 4.2-month supply at the current sales rate, up from 3.8 months in March and 4.0 months in April 2018.

Single-family home sales decreased 4.67 percent from March and 4.0 percent from a year ago. Condo and co-op sales were up 5.6 percent from the prior month and down 8.1 percent from April 2018.

On a month-over-month basis, sales fell 4.5 percent in the Northeast and 0.4 percent in the South. Sales were flat in the Midwest and grew 1.8 percent in the West.

“I think the market had a bit of a slow start in the fall, but Realtors all over the country have been telling me that April was a nice rebound. We’re hopeful and expect that this will continue heading into the summer,” said NAR President John Smaby. “Homes over the last month sold quickly, which is not only a win-win for buyers and sellers, but it’s also great for the real estate industry.”

Latest in Steel Markets