According to a sector organization, existing home sales in the United States only slightly increased in April, with economists not expecting a short-term decrease in mortgage rates. The National Association of Realtors reported that 4.02 million properties changed ownership last month on an annualized basis. This represented a modest increase compared to March (+0.2%), with the level remaining unchanged from a year ago.
Investors anticipated slightly stronger figures (around 4.10 million sales), according to MarketWatch’s consensus. Despite mixed macroeconomic signals, including record stock market levels and historically low consumer confidence, real estate sales have slightly progressed, noted NAR’s chief economist Lawrence Yun.
Some properties continue to attract multiple potential buyers simultaneously, indicating attractiveness, although the trend is weakening. The median price of a home was $417,700 in April, up 0.9% year-over-year due to limited supply. The average time on the market is increasing, suggesting that buyers are taking their time before making decisions, Yun added.
Mortgage rates have risen since the beginning of the Middle East conflict. As of May 7, 30-year rates, the most popular in the US, stood at 6.37%, according to Freddie Mac, slightly below the symbolic 6% threshold before the initial US-Israeli strikes on Iran. The surge in energy prices from the conflict has heightened inflationary pressures and lowered growth forecasts.
