MNI DATA ANALYSIS: US April Existing Home Sales -2.5% to 5.46M

By Kevin Kastner and Holly Stokes

     WASHINGTON (MNI) - Home resales fell by 2.5% in April to an annual rate of

5.46 million, below expectations for a small decline to a 5.58 million pace,

data released by the National Association of Realtors reported Thursday showed.

     March sales were unrevised at a 5.60 million rate. First quarter sales

average 5.51 million, the same as in all of 2017, so the April sales pace is

slightly behind.

     NAR Chief Economist Lawrence Yun told reporters that home sales remain in a

tight range and that supply concerns remain. He noted that rising home prices

and mortgage rates have created affordability issues that are not likely to

improve with further rate hikes.

     --SUPPLY STILL SOFT

     The number of housing units available for sale rose 9.8% in April to a

total of 1.80 million houses to start the spring selling season, but supply was

still down 6.3% from a year earlier. The months supply rose to 4.0 months in

April from 3.5 months in March, but was down from 4.2 months a year ago, making

a tight supply condition even tighter.

     As a result, April's national median price of $257,900 was up 5.3% from a

year earlier.

     Sales declines in three of the four regions and were flat in the Midwest,

so the April weakness was widespread.

--MNI Washington Bureau; tel: +1 202-371-2121; email: kevin.kastner@marketnews.com

[TOPICS: MAUDS$,M$U$$$]