US existing home sales for April

The US existing home sales for April came in at 5.57 million versus 5.65 million estimate. This was down from the revised 5.7 million sales pace last month (was 5.71 million). The month-to-month change was weaker at -2.3% versus -1.1% estimate.

Low supply levels held down existing-home sales in April and pushed the median number of days a home was on the market to a new low of 29 days, according to the National Association of Realtors.

The median existing-home price for all housing types in April was $244,800, up 6.0 percent from April 2016 ($230,900). April's price increase marks the 62nd straight month of year-over-year gains.

Total housing inventory at the end of April climbed 7.2 percent to 1.93 million existing homes available for sale, but is still 9.0 percent lower than a year ago (2.12 million) and has fallen year-over-year for 23 consecutive months. Unsold inventory is at a 4.2-month supply at the current sales pace, which is down from 4.6 months a year ago.

First-time buyers were 34 percent of sales in April, which is up from 32 percent both in March and a year ago. This matches the highest percentage since last September,

Regionally:

  • Existing-home sales in the Northeast dipped 2.7 percent to an annual rate of 730,000, and are now 2.7 percent below a year ago. The median price in the Northeast was $267,700, which is 1.6 percent above April 2016.
  • In the Midwest, existing-home sales increased 3.8 percent to an annual rate of 1.36 million in April, but are 0.7 percent below a year ago. The median price in the Midwest was $194,500, up 7.8 percent from a year ago.
  • Existing-home sales in the South in fell 5.0 percent to an annual rate of 2.30 million, but are still 3.6 percent above April 2016. The median price in the South was $217,700, up 7.9 percent from a year ago.
  • Existing-home sales in the West declined 3.3 percent to an annual rate of 1.18 million in April, but are still 3.5 percent above a year ago. The median price in the West was $358,600, up 6.8 percent from April 2016.

It is all about supply. The lack of supply in the lower end of the housing market is keeping a lid on the sales pace. The builders are simply not building these low end houses at a pace to satisfy the demand.