Sales of previously occupied US homes saw a slight decline of 0.5% in April, hitting an annualized rate of 4 million units, the slowest since 2009. Compared to last April, sales are down 2%. Despite higher home prices rising for 22 consecutive months, affordability problems due to high mortgage rates deter buyers. The average 30-year mortgage rate remains above 7%, impacting affordability. As the inventory of unsold homes increases, many prospective buyers are sidelined, contributing to ongoing sales struggles in the housing market since 2022.
The affordability condition is clearly hurting the market, particularly higher mortgage rates, as current rates have frustrated many potential homebuyers.
Sales of previously occupied US homes fell in April, as elevated mortgage rates and rising prices discouraged prospective buyers during traditional peak selling season.
Home sales dropped 0.5% from March to a seasonally adjusted annual rate of 4 million units, marking the slowest April sales pace since 2009.
The national median sales price rose 1.8% in April from a year earlier to $414,000, an all-time high for the month.
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