fbpx
May 19, 2022 Reading Time: 3 minutes

The selling rate of existing homes decreased 2.4 percent in April, to a 5.61 million seasonally adjusted annual rate. The selling rate is down 5.9 percent from a year ago.

The selling rate in the market for existing single-family homes, which account for about 89 percent of total existing-home sales, fell 2.5 percent in April, coming in at a 4.99 million seasonally adjusted annual rate, the first month below 5 million since June 2020 (see first chart). From a year ago, the selling rate is down 4.8 percent.

The single-family segment saw slowing sales in two of the four regions. Sales slowed 6.5 percent in the West and 5.6 percent in the South, the largest region by volume, while sales accelerated 3.7 percent in the Northeast, the smallest region by volume, and accelerated 4.2 in the Midwest. Measured from a year ago, sales were slower in all four regions (-11.1 percent in the Northeast, -8.3 percent in the West,-3.5 percent in the South, and -0.8 percent in the Midwest).

Condo and co-op sales slowed by 1.6 percent for the month, leaving sales at a 620,000 annual rate for the month, their slowest pace since July 2020, versus 630,000 in March (see first chart). From a year ago, condo and co-op sales were 13.9 percent slower. Condo and co-op sales were slower in two regions in April, -11.1 percent in the Midwest and -8.3 percent in the Northeast, but unchanged in the West and 3.6 percent faster in the South.  From a year ago, sales were slower in all four regions (-19.4 percent in the South, -11.1 percent in the Midwest, -8.3 percent in the Northeast, and -6.7 percent in the West).

Total inventory of existing homes for sale rose in April, increasing by 10.8 percent to 1.03 million (the first result above one million since November) leaving the months’ supply (inventory times 12 divided by the annual selling rate) up 0.3 month at 2.2, the highest since October, but still extremely low by historical comparison.

For the single-family segment, inventory was up 12.3 percent for the month at 910,000 (see second chart) but is 7.1 percent below the April 2021 level. The months’ supply was 2.2, up from 1.9 in the prior month (see third chart).

The condo and co-op inventory was unchanged at 118,000 (see second chart), leaving the months’ supply at 2.3, up from 2.2 in March.  Months’ supply is 17.9 percent below April 2021 (see third chart).

The median sale price in April of an existing home was $391,200, 14.8 percent above the year ago price. For single-family existing home sales in April, the price was $397,600, also a 14.8 percent rise over the past year and a record high (see fourth chart). The median price for a condo/co-op was $340,000, 13.1 percent above April 2021 and a record high (see the fourth chart).

Housing is likely to be volatile over the coming months as fundamentals adjust to changing market conditions. Increased opportunities for employees to work remotely are likely to impact demand while supply chain issues and labor difficulties impact supply. Furthermore, record-high prices and the recent surge in mortgage rates will likely push some buyers out of the market.

Robert Hughes

Bob Hughes

Robert Hughes joined AIER in 2013 following more than 25 years in economic and financial markets research on Wall Street. Bob was formerly the head of Global Equity Strategy for Brown Brothers Harriman, where he developed equity investment strategy combining top-down macro analysis with bottom-up fundamentals.

Prior to BBH, Bob was a Senior Equity Strategist for State Street Global Markets, Senior Economic Strategist with Prudential Equity Group and Senior Economist and Financial Markets Analyst for Citicorp Investment Services. Bob has a MA in economics from Fordham University and a BS in business from Lehigh University.

Get notified of new articles from Robert Hughes and AIER.
AIER - American Institute for Economic Research

250 Division Street | PO Box 1000
Great Barrington, MA 01230-1000

Contact AIER
Telephone: 1-888-528-1216 | Fax: 1-413-528-0103

Press and other media outlets contact
888-528-1216
[email protected]

Editorial Policy

This work is licensed under a 
Creative Commons Attribution 4.0 International License,
except where copyright is otherwise reserved.

© 2021 American Institute for Economic Research
Privacy Policy

AIER is a 501(c)(3) Nonprofit
registered in the US under EIN: 04-2121305