Record Prices and Higher Rates Slowdown Home Sales

  • May 19, 2022
  • Brian Turner
  • Home sales in April declined from a year ago and from the previous month and median home price rose to $391,200. The record pace of home sales has been declining and fell for the third month in a row and dropped to the lowest in nearly two years.

    Existing home sales declined 2.4% in April, National Association of Realtors said today. Sales declined 5.9% from a year ago. 

    Home sales declined for the third month in a row to a seasonally adjusted rate of 5.61 million. Home price increase slowed to 14.8% with median price of $391,200. 

    "Higher home prices and sharply higher mortgage rates have reduced buyer activity," said Lawrence Yun, NAR's chief economist. 

    "It looks like more declines are imminent in the upcoming months, and we'll likely return to the pre-pandemic home sales activity after the remarkable surge over the past two years."

    Despite the elevated prices and rising rates, homes remained on the market for only 17 days in April matching the days in March 2022 and April 2021. 

    Nearly 90% of all homes sold were on the market in less than a month. 

     All-cash sales accounted for 26% of transactions in April, down from 28% in March and up from the 25% recorded in April 2021.

    Single family home sales in April declined to a seasonally adjusted annual rate of 4.99 million, a decline of 2.5% from March and 4.8% from a year ago. 

    The median existing single-family home price was $397,600 in April, up 14.8% from April 2021.

    Existing home sales in the West fell 5.8% from the previous month and declined 8.1% from a year ago to an annual rate of 1.114 million and median home price increased 4.3% to $523,000.

    Existing home sales in the South declined 4.6% in April from the previous month and fell 5.7% from a year ago to 2.49 million annual rate. 

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