Sales of existing homes fell in April after posting a 10-year record in March, depressed by the “stubbornly low supply” of homes in the market, an industry group reported Wednesday.
The low supply meant properties were on the market for a record-low 29 days, down from 39 days a year ago and 34 days in the prior month, according to the National Association of Realtors.
Completed sales of single-family houses, townhomes and apartments fell 2.3 percent to an annual rate of 5.57 million, seasonally adjusted, NAR said in its monthly report, well below the 5.65 million rate analysts were expecting.
That sales pace is still 1.6 percent above the same month of 2016, as rising job creation and wages, along with pent-up demand from the post-crisis era, allowed more people to buy homes or trade up to a bigger house.
“Last month’s dip in closings was somewhat expected given that there was such a strong sales increase in March,” NAR chief economist Lawrence Yun said in a statement.
But supply is not keeping up with homebuyers’ needs.
“Demand is easily outstripping supply in most of the country and it’s stymieing many prospective buyers from finding a home to purchase,” Yun said.
The median existing-home price for all housing types in April was $244,800, up 6.0 percent from April 2016, when it was $230,900. That marks the 62nd straight month of year-over-year price gains.
Total inventory jumped 7.2 percent to 1.93 million available homes, but that was still nine percent below the same point last year and has fallen for 23 consecutive months, year-on-year.
Earlier this week, the Commerce Department reported that new home sales also slowed in April from a record March, plunging 11.4 percent.
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