(NAR) The total volume of existing home sales in the US declined by 2.4% in April from March to hit an annual rate of 5.61 million. The sales were 5.9% below the comparable month of 2021.
NAR’s chief economist Lawrence Yun commented on the existing home sales, pointing out that higher prices and mortgage rates drove buyers away. Yun expects more declines over the next months before the activity returns to the pre-covid levels in the next two years.
The lower sales activity pushed the housing inventory up 10.8% to 1.03 million units in April from March. The inventory was still 10.4% below last year.
At 1.03 million units, the inventory of unsold houses is at a 2.2-month supply, down from 1.9 months in March and 2.3% below last year.
House prices continued to rise, although it was at a slower pace of 14.8% on a year-over-year basis. The houses hit $391,200 in April, with gains posted in each region.
First-time home buyers accounted for 28% of April sales, compared to 30% in March and 31% in the prior year.
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