Existing home sales fall for third straight month, slowest pace since June 2020
Declines continue amid rising interest rates, sky-high home prices
Housing prices 'will continue to have upward pressure' as demand exceeds supply: Expert
Macro Trends Advisors LLC founding partner Mitch Roschelle argues that construction of new homes falling in April for the second month in a row is 'more of a materials and labor story than it is about the broader housing market.'
Existing home sales dropped in April for the third month in a row, slowing to a pace not seen since June 2020.
The National Association of Realtors reported Thursday that sales of previously occupied homes fell by 2.4% last month from March, and declined 5.9% from the year before.
A decline in demand was expected as interest rates climb and sky-high home prices continue to rise. Economists say the trend will likely continue.
ASKING RENTS REACH RECORD HIGH IN APRIL, SOME AREAS SEE 30% SURGE IN PRICES
"Higher home prices and sharply higher mortgage rates have reduced buyer activity," said Lawrence Yun, NAR's chief economist. "It looks like more declines are imminent in the upcoming months, and we'll likely return to the pre-pandemic home sales activity after the remarkable surge over the past two years."
A sold sign sits in front of a house in Brighton, N.Y. (Associated Press / AP Newsroom)
The inventory of unsold homes on the market also jumped in April to 1.03 million units. That's up 10.8% from the month before and down 10.4% from April 2021.
MILLENNIALS, BOOMERS PART OF ‘TRIPLE THREAT’ DRIVING UP HOUSING PRICES: REAL ESTATE EXPERT
"Housing supply has started to improve, albeit at an extremely sluggish pace," said Yun.
A sale pending sign is displayed outside a residential home for sale in East Derry, N.H. (AP Photo/Charles Krupa, File / AP Newsroom)
He added, "The market is quite unusual as sales are coming down, but listed homes are still selling swiftly, and home prices are much higher than a year ago."
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The NAR reported that the median existing home sales price rose in April by 14.8% year over year to $391,200.