MNI DATA: Lockdowns Disrupt US April Home Sales; Prices Higher

--NAR Says Existing Home Sales Lowest In A Decade

By Ryan Hauser

     WASHINGTON (MNI) - April U.S. existing-home sales fell -17.8% to 4.33

million, continuing a two-month slide to their slowest pace since September 2011

as nationwide lockdowns disrupted sales amid an increasingly pricey housing

market, the National Association of Realtors said Thursday.

     NAR chief economist Lawrence Yun told reporters he expects sales to pick up

in the months to come. "What we are hearing from realtors is that they are

getting busy" as "foot-traffic activity is becoming much livelier in May" after

states relaxed stay-at-home orders. 

     "The economic lockdowns -- occurring from mid-March through April in most

states -- have temporarily disrupted home sales," said Yun. "But the listings

that are on the market are still attracting buyers and boosting home prices."

Yun also cited stock market disruptions starting in mid-February as having a

lingering negative effect on existing home sales.

     The month-over-month drop in sales was the largest since July 2010 when

they were 3.45 million after a tax break for U.S. homeowners ended, NAR said. 

     Sales declined across all major regions, down -16.9% in New England, -12.0%

in the Midwest, -17.9% in the South, and -25.0% in the West.

     Yun said April saw a "marked difference" between sales in single-family

units and condominiums, with the former down -16.9% and the latter down -26.4%.

"There appears to be a shift in preference for single-family homes over

condominium dwellings," he said. "This trend could be long-lasting as remote

work and larger housing needs will become widely prevalent even after we emerge

from this pandemic."

     Despite the large monthly drop in sales, the national median for existing

home prices was the highest ever, Yun said, reaching $286,800, a 4.7% increase

year-over-year. 

     Yun emphasized the national need for more affordable housing and called the

current price appreciation "unhealthy." The upside, however is that distressed

sales, which made up only about 3% of monthly sales, "are a nonfactor given that

prices are rising," Yun said.

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

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