Summary
The number of homes actively listed for sale was notably higher in April than last year, growing by 30%, a sixth straight month of growth. Also, home sellers were more active in April, with 12% more homes newly listed on the market compared with April 2023.
Report
April housing data from realtor.com saw small but meaningful affordability gains eclipsed by a renewed rise in mortgage rates. Driven by rising mortgage rates in April, the cost to purchase a home once again outpaced wage growth after a one month reprieve in March. Meanwhile, sellers continue to list homes at a greater rate than last year, which has led to a promising increase in more affordable homes for sale.
There were 30% more homes actively for sale on a typical day in April, compared with April 2023, marking the sixth consecutive month of annual inventory growth. For the first four months of this year, the inventory of homes actively for sale was at its highest level since 2020. In April, as in February and March, the growth in homes for sale in the $200,000 to $350,000 price range outpaced all other price categories. The total number of homes for sale, including those under contract but not yet sold, increased by 20% compared with April 2023. The number of homes under contract but not yet sold increased by 6% in April, similar to the growth rate in March. In May, we expect to see slow growth in pending listings.
As pending home sales are an early indicator of the direction of existing home sales, sales may decelerate further after dipping 4% in March. Sellers turned out in higher numbers this April, as newly listed homes were 12% above last year’s levels. It marked the sixth month of increasing listing activity after a 17-month streak of declines.
However, if mortgage rates remain elevated over the next few months, the housing market may see a return to the holding pattern of scarce inventory. The national median list price continued to increase seasonally to $430,000 in April compared with $424,900 in March, and the median list price remained stable compared to last April when it was also $430,000. A realtor.com survey found that sellers have more realistic market expectations this year, with fewer potential sellers expecting a bidding war or a sale above their asking price compared with last year.
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