Please ensure Javascript is enabled for purposes of website accessibility
April US Home Sales Fell as Low Inventory Pushed up Prices
gvw_ap_news
By Associated Press
Published 4 years ago on
May 21, 2021

Share

Sales of previously occupied U.S. homes fell for the third straight month in April as the number of properties for sale hit a record low, driving prices to new highs.

Existing home sales fell 2.7% last month from March to a seasonally-adjusted rate of 5.85 million annualized units, the National Association of Realtors said Friday. Sales jumped 33.9% from April last year, when the pandemic caused sales to slow sharply.

April’s sales pace was the slowest since last June and well below the 6.01 million sales rate economists expected, according to FactSet.

“Even with home sales declining modestly, one can describe the market as being hot,” said Lawrence Yun, NAR’s chief economist.“ All indications is that buyer demand remains strong.”

Sales through the first four months of this year are running 20% higher than they were a year ago, the NAR said.

Lack of Houses and High Demand Driving Up Home Prices

The combination of solid demand and a dearth of homes on the market continues to drive up home prices. Last month, the U.S. median home price surged 19.1% from a year earlier to $341,600, an all-time high. Half of the homes on the market are selling for more than their list price, Yun said.

At the end of April, the inventory of unsold homes stood at just 1.16 million, an increase of 10.5% from March, but down 20.5% from April last year. At the current sales pace, that amounts to a 2.4-month supply, versus a 4-month supply a year earlier, the NAR said.

The low inventory of homes on the market is fueling heated competition among buyers, resulting in bidding wars and leading to homes selling at a breakneck pace.

Homes were typically snapped up within just 17 days of hitting the market last month, the fastest turnaround time on records going back to 2011, the NAR said. In April last year, homes typically sold in 27 days. All told, 88% of homes sold in April were on the market for less than a month.

The ultra-competitive market is making it hardest on first-time homebuyers, which accounted for 31% of homes sold last month, down from 36% a year earlier, the NAR said.

Low mortgage rates remain a positive for many would-be homebuyers, proving them with a measure of financial flexibility. The average rate on the benchmark 30-year loan rose to 3% this week for the first time since mid-April. It was 2.94% last week and 3.24% at this time last year, according to mortgage buyer Freddie Mac.

RELATED TOPICS:

DON'T MISS

Elon Musk Reclaims Top Spot on Forbes’ Billionaires List

DON'T MISS

California Just Blew Its First Deadline for Voter-Approved Healthcare Measure

DON'T MISS

Trump Administration Halts Dozens of Research Grants at Princeton University

DON'T MISS

Fresno County Sheriff’s Pilot Takes His Last Flight as He Retires After 31 Years of Service

DON'T MISS

A Palestinian From the West Bank Is First Detainee Under 18 to Die in Israeli Prison, Officials Say

DON'T MISS

How Safe Is It to Walk to School? Fresno County Wants to Find Out

DON'T MISS

Baseball Is Back! How to Listen to Your MLB Favorites and the Grizzlies

DON'T MISS

Trump Says He’s Settled on a Tariff Plan That Is Set to Take Effect Wednesday

DON'T MISS

Auto Sales Surged in Anticipation of Trump’s Tariffs

DON'T MISS

Raid Or Rumor? Reports Of Immigrations Sweeps Are Warping Life In CA’s Central Valley

UP NEXT

Lakers Hold Off Rockets With 6 3-Pointers Apiece From Dorian Finney-Smith, Gabe Vincent

UP NEXT

Athletics Bat Boy Stewart Thalblum Takes Down Drone in Left Field

UP NEXT

NFL Postpones Tush Push Decision but Passes Other Rule Changes, AP Source Says

UP NEXT

March Madness: It’s South Carolina vs. Texas and UCLA vs. UConn in Women’s Final Four

UP NEXT

Major Layoffs Begin at Health Agencies That Track Disease and Regulate Food

UP NEXT

U.S. Bank Executive Terry Dolan Dies in Plane Crash Near Minneapolis

UP NEXT

Top Vaccine Official Resigns From FDA, Criticizes RFK Jr. for Promoting Misinformation, Lies

UP NEXT

Utah Becomes the First State to Ban Fluoride in Public Drinking Water

UP NEXT

Wilmer Flores’ 3-Run Homer in the 9th Inning Propels Giants to Victory Over Reds

UP NEXT

Democrats’ Popularity Plummets, yet Midterm Prospects Remain Strong

Fresno County Sheriff’s Pilot Takes His Last Flight as He Retires After 31 Years of Service

9 hours ago

A Palestinian From the West Bank Is First Detainee Under 18 to Die in Israeli Prison, Officials Say

10 hours ago

How Safe Is It to Walk to School? Fresno County Wants to Find Out

10 hours ago

Baseball Is Back! How to Listen to Your MLB Favorites and the Grizzlies

11 hours ago

Trump Says He’s Settled on a Tariff Plan That Is Set to Take Effect Wednesday

11 hours ago

Auto Sales Surged in Anticipation of Trump’s Tariffs

11 hours ago

Raid Or Rumor? Reports Of Immigrations Sweeps Are Warping Life In CA’s Central Valley

11 hours ago

House Speaker Johnson Fails to Squash a Proxy Voting Effort From New Moms in Congress

12 hours ago

UN Agency Closes Its Remaining Gaza Bakeries as Food Supplies Dwindle Under Israeli Blockade

12 hours ago

Hooters Goes Bust and Files for Bankruptcy Protection

12 hours ago

Elon Musk Reclaims Top Spot on Forbes’ Billionaires List

Elon Musk has reclaimed his position as the world’s wealthiest individual, according to Forbes’ 39th annual World’s Billio...

6 hours ago

6 hours ago

Elon Musk Reclaims Top Spot on Forbes’ Billionaires List

9 hours ago

California Just Blew Its First Deadline for Voter-Approved Healthcare Measure

Nassau Hall at Princeton University is in Princeton, N.J., Oct. 8, 2024. (AP File)
9 hours ago

Trump Administration Halts Dozens of Research Grants at Princeton University

After 31 years of service, Fresno County Sheriff’s Deputy IV and Pilot Michael Sill is retiring, having logged over 10,000 flight hours.
9 hours ago

Fresno County Sheriff’s Pilot Takes His Last Flight as He Retires After 31 Years of Service

Khalid Ahmad holds a poster of his 17-year-old son, Waleed, who died in an Israeli prison, that reads in Arabic, "The hero prisoner Martyr, mercy and eternity for our righteous Martyrs," in the West Bank town of Silwad, northeast of Ramallah Wednesday, March 26, 2025. (AP/Nasser Nasser)
10 hours ago

A Palestinian From the West Bank Is First Detainee Under 18 to Die in Israeli Prison, Officials Say

10 hours ago

How Safe Is It to Walk to School? Fresno County Wants to Find Out

11 hours ago

Baseball Is Back! How to Listen to Your MLB Favorites and the Grizzlies

Vehicles at an Audi showroom in Miami, March 29, 2025. President Donald Trump has said that tariffs would encourage auto companies and their suppliers to move to the U.S. (Saul Martinez/The New York Times)
11 hours ago

Trump Says He’s Settled on a Tariff Plan That Is Set to Take Effect Wednesday

Help continue the work that gets you the news that matters most.

Search

Send this to a friend