April Home Sales Drop to Slowest Pace for the Month Since 2009

Home sales in the U.S. slowed again in April, falling to the lowest level for the month since 2009, as high prices and economic uncertainty continued to dampen buyer demand.

According to the National Association of Realtors (NAR), sales of previously owned homes declined 0.5% from March to a seasonally adjusted annualized rate of 4 million units. That marks a 2% drop compared to April last year and falls well short of the 2.7% increase that housing economists had forecast.

“This is now the third straight year that home sales have remained at about 75% of pre-pandemic levels, despite seven million new jobs being added to the economy,” said Lawrence Yun, NAR’s chief economist. “There is significant pent-up housing demand, but it has yet to materialize. A meaningful drop in mortgage rates could unlock that demand.”

Rising inventory is starting to reshape the market. The number of homes for sale jumped 9% from the previous month and was nearly 21% higher than a year ago. At the end of April, there were 1.45 million homes on the market, representing a 4.4-month supply—up from 3.5 months last year, and the highest level in five years. A six-month supply is generally considered a balanced market.

Prices, however, have remained high. The median price for an existing home sold in April was $414,000, up 1.8% year over year. While that is the highest April price ever recorded, it also reflects the slowest price growth since July 2023. Notably, prices in the South and West regions have started to decline.

Yun noted, “At the macro level, we are still in a mild seller’s market. But with the highest inventory levels in nearly five years, consumers are better positioned to negotiate.”

Homes spent an average of 29 days on the market in April, which is slightly faster than March but longer than April 2024. First-time buyers accounted for 34% of all sales, consistent with last year’s share.

Contract cancellations also rose sharply, hitting 7% of sales in April—up from a typical rate of 3% to 4%. Analysts say rising mortgage rates and increased uncertainty are likely factors behind the trend.

Sales were strongest on the high end of the market. Transactions for homes priced above $1 million rose nearly 6% from a year ago. By contrast, sales of homes priced between $100,000 and $250,000 dropped just over 4%. However, Yun added that the gains at the top end of the market are narrowing, likely due to recent volatility in the stock market.