A report released last week by the National Association of Federally-Insured Credit Unions (NAFCU) revealed existing-home sales decreased 2.5 percent in April following two months of gains – with the decline attributed to supply shortages.
April’s existing-home sales fell to a seasonally adjusted annual rate of 5.46 million. Sales during the month were 1.4 percent lower than a year ago.
The reported referenced sales declined in three of the four regions during April. It also noted sales in the Northeast decreased 4.4 percent, followed by the West and the South. Sales in the Midwest, however, were unchanged from the previous month.
Analysts said they consider six months of housing supply to be roughly balanced between supply and demand, adding inventory rose 9.8 percent in April but was still 6.3 percent lower than a year ago. Inventory has declined year-over-year for 35 consecutive months.
“According to the National Association of Realtors, a typical property sold in April went under contract in a record-breaking 26 days,” Yun Cohen, a NAFCU research assistant, said. “While the share of first-time buyers picked up somewhat in April, they have been particularly affected by the inventory shortage.”
The report also revealed the median existing-home price increased from $249,800 in March to $257,900 in April, representing a figure 5.3 percent higher than the median price from a year ago. April marks the 74th consecutive month of year-over-year price increases.