Sales of previously occupied U.S. homes remained essentially stagnant in April, underscoring the persistent affordability crisis that continues to lock millions of Americans out of homeownership during what should be the market's busiest season. Existing home sales edged up just 0.2% last month from March to a seasonally adjusted annual rate of 4.02 million units, the National Association of Realtors said Monday, with sales unchanged compared with April last year.
The latest sales figure fell short of the roughly 4.12 million pace economists were expecting, according to FactSet, while Reuters reported economists had forecast about 4.05 million at a seasonally adjusted annual rate. Sales have been hovering close to a 4-million annual pace going back to 2023, far short of the historic norm that is closer to 5.2 million—a gap that reflects how many families remain unable to achieve the stability of homeownership.
Record Prices Squeeze Buyers
The U.S. median sales price increased 0.9% in April from a year earlier to $417,700, an all-time high for any April on data going back to 1999, NAR said. Home prices have risen on an annual basis for 34 consecutive months. Lawrence Yun, NAR's chief economist, said, "This spring homebuying season, so far all the way through April, we can say we are not predicting any increase compared to one year ago."
While average incomes are now rising at a faster pace than U.S. home prices, affordability remains a major hurdle for aspiring homeowners. Years of soaring home prices, especially in the early part of this decade when rock-bottom mortgage rates fueled a buying frenzy, have left many would-be homebuyers frozen out of the market.
Chronic Housing Shortage Drives Crisis
A chronic shortage of homes for sale nationally, due partly to years of below-average new home construction, has helped prop up home prices even in a multiyear sales slump. This structural shortage represents a failure of housing policy to keep pace with population growth and demand, leaving working families to compete for an inadequate supply.
Homes purchased last month likely went under contract in February and March, when the average rate on a 30-year mortgage ranged from 5.98%, its lowest level in three and a half years, to 6.38%, according to mortgage buyer Freddie Mac. The average rate was 6.37% last week. While the average rate has remained below where it was a year ago, it has been fluctuating since the war with Iran began, as surging energy prices fuel anxiety about higher inflation.
Inventory Remains Below Historic Norms
Those who can afford to buy are benefiting from more properties on the market, although home inventory levels remain well below historical norms. There were 1.47 million unsold homes at the end of April, up 5.8% from March and up 1.4% from April last year, NAR said. That was the most homes on the market for the month of April going back to 2019, when the month-end inventory stood at 1.83 million homes. It was still short of the roughly 2 million homes for sale that was typical before the COVID-19 pandemic.
April's month-end inventory translated to a 4.4-month supply at the current sales pace. Traditionally, a 5- to 6-month supply is considered a balanced market between buyers and sellers. Yun said, "We really need to see 30% growth in inventory, but we're not really seeing that."
One factor helping boost the supply of homes for sale is that many properties are sitting on the market longer. Properties typically remained on the market for 32 days last month before selling, down from 41 days in March, but up from 29 days in April last year, NAR said. As homes take longer to sell, asking prices have started falling in many metro areas, especially in the South and Midwest. The national median home listing price was down in April from a year earlier, according to Realtor.com. Reuters said the April increase was driven by multi-family housing, while single-family home sales were flat.
Why This Matters:
The persistent stagnation in home sales reflects a housing market that continues to fail working and middle-class families seeking the economic security that homeownership provides. With sales hovering far below historic norms for the fifth year and prices reaching record highs, the dream of homeownership remains out of reach for millions of Americans despite rising incomes. The chronic shortage of affordable housing inventory—a direct result of decades of underinvestment in residential construction and inadequate housing policy—perpetuates wealth inequality and denies families the opportunity to build equity. As properties sit longer on the market and prices begin softening in some regions, the data suggests the market may be reaching a breaking point, but without substantial policy intervention to increase housing supply and ensure affordability, the structural barriers keeping families locked out of homeownership will persist.