WASHINGTON – Existing home sales fell 0.8% in April to a seasonally adjusted annual rate of 5.05 million as sales for mid-price homes continue to struggle, the National Association of Realtors said Thursday.
Sales in March were revised slightly lower to 5.09 million from 5.10 reported last month. April’s sales fell in every region except the Midwest as the median price declined nationally.
Economists expected sales to increase to 5.21 million existing homes for the month, according to the median estimate from Thomson Reuters.
NAR’s chief economist Lawrence Yun said the difference between strong pending home sales for April and sales closings was due to the sample size difference between the two indicators. The existing home sales sample is much larger and more comprehensive, he said.
Yun said homes in the low and high price ranges are selling. “Investors are continuing to seek bargains” for low-priced homes – those below $100,000, he said. Wealthy buyers are continuing to scoop up homes priced above $750,000, he said.
The bulk of home sales in the mid-price range are stagnant, he said.
The median sales price increased to $163,700 in April from $159,800 in March. The median price was down 5.0% from a year ago.
In April, the total inventory of existing homes for sale was 3.87 million, representing 9.2 months at the current sales pace. The supply for March was 8.3 months. The inventory figure is expected to increase heading into the summer months, Yun said.
