Sales of previously occupied U.S. homes fell in April, as elevated mortgage rates and rising prices discouraged prospective home buyers during what’s traditionally the busiest time of the year for the housing market.
Existing home sales dropped 0.5% last month from March to a seasonally adjusted annual rate of 4 million units, the National Association of Realtors said Thursday.
Sales fell 2% compared with April last year. The latest home sales fell slightly short of the 4.10 million pace economists were expecting, according to FactSet.
Home prices increased on an annual basis for the 22nd consecutive month, although at a slower rate. The national median sales price rose 1.8% in April from a year earlier to $414,000, an all-time high for the month of April.
There were 1.45 million unsold homes at the end of last month, a 9% increase from March, and 20.8% higher than April last year, NAR said.
That translates to a 4.4-month supply at the current sales pace, up from a 3.5-month pace at the end of April last year. Traditionally, a 5- to 6-month supply is considered a balanced market between buyers and sellers.
