MNI BRIEF: April US Existing Home Sales Miss But Prices Rise

U.S. existing home sales dropped 1.9% in April to a seasonally adjusted annual rate of 4.14 million, below the 4.19 million pace analysts expected, the National Association of Realtors said Wednesday. Existing home sales have been rangebound at a little over 4 million for the past 12 months.

The median existing-home sales price added 5.7% from a year ago to USD407,600, the highest price ever for the month of April and the strongest home price appreciation since October 2022, NAR chief economist Lawrence Yun said. Home prices have risen 63% over the past five years, he said. Inventory rose 16% from a year ago to 1.2 million at the end of April but remains tight compared to pre-Covid levels of around 1.8 million, Yun said.

Mortgage rates will "most likely descend somewhat" if the Fed cuts rates sometime later this year as he expects, and home sales might break out somewhat at that point, Yun said. (See: MNI INTERVIEW: CPI Keeps Fed On Track For '24 Cuts-Ireland)