financetom
Economy
financetom
/
Economy
/
US existing home sales unexpectedly fall in April
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US existing home sales unexpectedly fall in April
May 26, 2025 12:34 PM

WASHINGTON (Reuters) -U.S. existing home sales unexpectedly fell in April despite a temporary drop in mortgage rates and increased supply, and could remain lackluster this year amid rising economic uncertainty.

Home sales slipped 0.5% last month to a seasonally adjusted annual rate of 4.00 million units, the National Association of Realtors said on Thursday. Economists polled by Reuters had forecast home resales would rise to a rate of 4.10 million units.

Sales last month were the slowest for April since 2009, signaling a weak start to the spring selling season. They declined 2.0% on a year-over-year basis in April.

"Home sales have been at 75% of normal or pre-pandemic activity for the past three years," said Lawrence Yun, the NAR's chief economist.

Existing home sales are counted at the closing of a contract. Sales last month likely reflected contracts signed in February and March, when the average rate on the popular 30-year fixed-rate mortgage bounced around in the lower end of its 6.09%-6.73%, data from mortgage finance agency Freddie March showed. The rate has since risen, averaging 6.81% last week.

Mortgage rates have increased in tandem with the yield on the benchmark 10-year U.S. Treasury note amid President Donald Trump's aggressive trade policy and concerns about the nation's deteriorating fiscal outlook after Moody's Investors Service cut its sovereign credit rating from the top "Aaa" level.

With sales being weak, the inventory of existing homes increased 9.0% to 1.45 million units in April. Supply soared 20.8% from a year ago. An oversupply of new homes on the market could pull buyers away from previously owned ones. Builders are cutting prices and offering incentives to attract customers.

"At the macro level, we are still in a mild seller's market," Yun said. "But with the highest inventory levels in nearly five years, consumers are in a better situation to negotiate for better deals."

The median existing home price increased 1.8% from a year earlier to $414,000 in April, the highest on record for the month. Prices increased in the Northeast and Midwest, but declined in the South and West.

At April's sales pace, it would take 4.4 months to exhaust the current inventory of existing homes, up from 3.5 months a year ago. A four-to-seven-month supply is viewed as a healthy balance between supply and demand.

Properties typically stayed on the market for 29 days last month compared to 26 days a year ago.

First-time buyers accounted for 34% of sales, edging up from 33% a year ago. Economists and realtors say a 40% share is needed for a robust housing market.

All-cash sales constituted 25% of transactions, down from 28% a year ago. Distressed sales, including foreclosures, made up 2% of transactions, unchanged from a year ago.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US Congress scrambles to pass $1.2 trillion spending bill, midnight deadline looms
US Congress scrambles to pass $1.2 trillion spending bill, midnight deadline looms
Mar 22, 2024
WASHINGTON (Reuters) - The Republican-controlled U.S. House of Representatives and Democratic-majority Senate on Friday will scramble to beat a midnight government shutdown deadline by passing a $1.2 trillion bill keeping the government funded through September. If they succeed, it will end a more-than-six-month battle over the scope of Washington's spending for the fiscal year that began Oct. 1. If they...
Fed Chair Powell says pandemic has had lasting effects on economy
Fed Chair Powell says pandemic has had lasting effects on economy
Mar 22, 2024
(Reuters) - Federal Reserve Chair Jerome Powell on Friday opened a Fed Listens event on how Americans are experiencing the economy, saying the pandemic has had lasting effects and that to make good policy the U.S. central bank cannot rely only on macroeconomic data but needs to hear directly from people and businesses. He did not make any remarks about the...
US Dollar Improves Early Friday Ahead of Fed Appearances, State Unemployment
US Dollar Improves Early Friday Ahead of Fed Appearances, State Unemployment
Mar 22, 2024
07:38 AM EDT, 03/22/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Friday, except for a decline versus the yen, ahead of a series of appearances by Federal Reserve officials that compensate for a lack of major US data. Fed Chairman Jerome Powell is scheduled to make opening remarks at a Fed Listens conference at...
U.S. companies' stock purchases via buybacks, M&A to hit 6-year high in 2024, Goldman says
U.S. companies' stock purchases via buybacks, M&A to hit 6-year high in 2024, Goldman says
Mar 22, 2024
(Reuters) - U.S. companies' purchases of domestic equities through more stock buybacks and corporate acquisitions will hit a six-year high of $625 billion this year, about as much as mutual funds and pension houses will offload, Goldman Sachs said. A surge in share buybacks and continued growth in cash mergers and acquisitions (M&A) will be the primary drivers of corporate...
Copyright 2023-2025 - www.financetom.com All Rights Reserved