On Thursday, May 8th, 2025, a “sale” sign in front of a home in Washington, DC, USA.
Nathan Howard | Bloomberg | Getty Images
The spring housing market continues to struggle amid high interest rates and low consumer confidence.
Sales of homes previously owned in April fell 0.5% from March to 4 million units per year, according to the National Association of Realtors. It is the slowest pace of April since 2009.
Sales fell 2% from April last year. Housing economists were expecting a 2.7% profit.
The count is based on the closure and means contracts likely signed in February and March before mortgage rates rose in April.
“Home sales have been 75% of the past three years, the past three years, or 75% of past activities,” said Lawrence Yun, chief economist at NAR. “We don’t realize that, but demand for housing continues to increase. A meaningful drop in mortgage rates will help to unlock this demand.”
Stock rose 9% a month, nearly 21% higher than last April. At the end of April, 1.45 million homes were on sale, representing supply for 4.4 months at the current sales pace. It’s the highest level in five years, but it’s still below the six-month supply that is considered a balanced market. A year ago, we had a supply of 3.5 months.
More supply is beginning to get colder prices. The median price of existing homes sold in April was $414,000, up just 1.8% year-on-year. This is the highest price on record for April, but it’s the latest appreciation since July 2023. Last year, annual prices were much higher. Prices have fallen in both the southern and western regions.
“On a macro level, we are still in a mild seller’s market,” Yun said. “However, with the highest inventory levels in nearly five years, consumers are in a better position to negotiate better deals.”
The house was on the market for an average of 29 days faster than in March, but longer than last April. First-time buyers accounted for 34% of sales, almost as they did last year.
The cancellation rate, or the number of people cancelling contracts, has also risen, reaching 7% of sales in April. This has increased from an average of 3% recently to 4%.
At the high end of the market, activity remains strong. Home sales have risen over $1 million, up almost 6% from a year ago. Prices were just over 4% between $100,000 and $250,000. However, Yoon pointed out that profits at the high end are shrinking.
“I think it’s part of the stock market shakeout that occurred,” he said.
