Existing home sales in the United States have fallen to their lowest level for any April since 2009. The latest data shows a 3.1% year-over-year decline, bringing the annualized sales rate to 4.0 million units. Month-over-month, sales slipped 0.5%, missing expectations of a 2.0% increase.
The housing market continues to struggle despite signs of improving inventory. The West and Northeast regions saw the sharpest declines, with sales dropping 3.9% in the West and 2.0% in the Northeast. Meanwhile, the Midwest saw a 2.1% increase, and the South remained unchanged.
Mortgage rates remain a major obstacle for buyers. The average 30-year fixed mortgage rate climbed back above 7%, discouraging many from entering the market. Homeowners locked into lower rates are hesitant to sell, keeping supply tight and prices elevated.
Inventory levels have improved, rising 9% from March and 20.8% year-over-year, bringing total available homes to 1.45 million units. However, affordability remains a challenge, with the median home price reaching $414,000, marking the 22nd consecutive month of year-over-year price increases.
The slowdown in sales reflects broader economic uncertainty. Buyers are holding off on purchases, waiting for mortgage rates to ease. The market’s trajectory will depend on future rate movements and whether affordability improves enough to bring hesitant buyers back.
https://twitter.com/FinanceLancelot/status/1931999451318526314
Sources:
https://economics.td.com/us-existing-home-sales
https://eyeonhousing.org/2025/05/existing-home-sales-fall-in-april/