Sales of previously owned U.S. homes rose slightly in April as housing inventory improved, though affordability pressures continued limiting broader market activity.

Existing-home sales increased 0.2% month-over-month to a seasonally adjusted annual rate of 4.02 million units in April, according to data released on Monday by the National Association of Realtors. Sales were unchanged compared to the same month last year.

The median existing-home sales price rose 0.9% year-over-year to $417,700, marking the 34th consecutive month of annual price increases and the highest median home price ever recorded for April.

Total housing inventory climbed 5.8% from March to 1.47 million units. Unsold inventory represented a 4.4-month supply at the current sales pace, up from 4.2 months in March.

Affordability Pressures Persist

NAR Chief Economist Lawrence Yun said lower mortgage rates and stronger income growth modestly supported affordability during the month.

"Mortgage rates are lower from a year ago, and average income growth is outpacing home price gains," Yun said.

Still, affordability remains a key challenge across the housing market.

Earlier this month, Zillow Group Inc. ( ZG ) CEO Jeremy Wacksman said affordability pressures and macroeconomic uncertainty continued keeping buyers on the sidelines as transaction growth remained modest.

Regional Trends

Sales activity varied across regions in April. Sales rose 2.2% in the Midwest and 0.5% in the South, remained unchanged in the Northeast and declined 2.6% in the West.

The South was the only region to post year-over-year sales growth.

Homes remained on the market for a median of 32 days in April, compared with 29 days a year earlier. First-time buyers accounted for 33% of transactions, while all-cash sales represented 25% of purchases.

Recent Redfin data also showed buyers increasingly shifting toward lower-cost Midwest suburbs and smaller Florida markets as affordability pressures reshape housing demand across major U.S. cities.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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