**MNI 5 Things:US Apr Existing Homes Below Expectations, 5.46M

--5 Things We Learned From The Existing Home Sales Data

By Kevin Kastner and Holly Stokes

     WASHINGTON (MNI) - The following are the key points from the April existing

home sales data released Thursday by the National Association of Realtors:

     - April existing home sales fell more than expected, declining 2.5% to

5.46M compared to the 5.58M expected. This followed an unrevised March at 5.60M.

     - The decline in April resales was led by declines of 4.4% in the

Northeast, 2.9% in the South, and 3.3% in the West. The Midwest came in flat.

     - April home supply +9.8% to 1.8M, but still -6.3% year/year, allowing the

months supply to jump to 4.0 months from 3.5 months in March, but below the 4.2

month a year ago. While this was a gain for inventory month/month, this is the

35th consecutive month of year/year declines. 

     - NAR's Chief Economist Lawrence Yun noted that an inventory shortage has

led existing home sales to track along a narrow range over the past several

months, despite a growing economy. However, Yun noted that recent legislative

efforts to reduce regulations on small lenders could mean future growth in

construction spending and inventory creation.

     - National median sales price +5.3% year/year to $257,900 in April. This

was the 74th month of price gains, and increases in mortgages continue to

outpace wage inflation - as noted in an MNI Analysis. Further, Yun added that

rising interest rates will create added burden on consumers. 

--MNI Washington Bureau; +1 202-371-2121; email: holly.stokes@marketnews.com

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