New data shows the rate of existing home sales in the U.S. has fallen for the third consecutive month after reaching a record high in October. Additionally, April housing starts have also fallen since March.
In total, existing home sales fell 2.7 percent in April according to the National Association of Realtors (NAR), reaching 5.9 million homes sold in the month. However, this figure was still more than 33 percent higher than April 2020, demonstrating continued momentum for housing.
Housing starts fell 9.5 percent from March to a seasonally adjusted rate of 1.6 million homes, according to the U.S. Census Bureau. This figure is still 67 percent higher than April 2020 levels.
The median sales price of a home rose to $341,600, up more than 19 percent from the same period one year ago, according to NAR. This is a record high and marks 110 straight months of year-over-year gains.
“Home sales were down again in April from the prior month, as housing supply continues to fall short of demand,” says Lawrence Yun, NAR’s chief economist. “We’ll see more inventory come to the market later this year as further COVID-19 vaccinations are administered and potential home sellers become more comfortable listing and showing their homes. The falling number of homeowners in mortgage forbearance will also bring about more inventory.”