Existing-home sales edge up in April as affordability improves

By Brett Rowland
The Center Square

Existing-home sales rose 0.2% in April to a seasonally adjusted annual rate of 4.02 million, rebounding after a 3.6% drop in March, according to the National Association of Realtors.

The median sales price reached $417,700, up 0.9% from a year ago and the 34th consecutive month of year-over-year price increases.

“Despite mixed macroeconomic signals – including a record-high stock market and historically low consumer confidence – home sales were modestly boosted by the continued improvement in housing affordability,” NAR Chief Economist Lawrence Yun said. “Mortgage rates are lower from a year ago, and average income growth is outpacing home price gains.”

Mortgage rates rose to 6.33% in April from 6.18% in March, though down from 6.73% a year ago, according to Freddie Mac.

Inventory totaled 1.47 million units, a 4.4-month supply. A six-month supply is generally considered a balanced market.

First-time buyers made up 33% of April sales. The median age of a first-time buyer hit a record 40 last year, up from the late 20s in the 1980s, according to NAR’s 2025 Profile of Home Buyers and Sellers.

The White House’s Council of Economic Advisers estimated the U.S. would have 10 million or more additional homes today had post-2008 construction continued at historical rates.

NAR said in March that 300,000 to 500,000 additional listings are needed to normalize the existing market.

The Trump administration has directed Fannie Mae and Freddie Mac to buy $200 billion in mortgage-backed securities to lower rates and has pursued deregulatory efforts aimed at reducing building costs, though the shortage persists.

NAR cut its 2026 existing-home sales forecast from 14% growth to 4% in April, citing rising mortgage rates.