Existing-home sales fell in April as mortgage rates rose and home prices continued to rise. But some market segments are showing resilience: High-end home sales—listings at $1 million and above—posted significant gains in April, increasing 40% compared to a year ago, according to the National Association of REALTORS® latest housing report. The share of first-time home buyers also is rising. NAR’s existing-home sales index, which reflects completed transactions for single-family homes, townhomes, condos and co-ops, shows sales fell nearly 2% in April compared to March and are down by about 2% from a year ago. All four major regions of the U.S. saw a decline in home sales last month.

“Home sales changed little overall, but the upper-end market is experiencing a sizable gain due to more supply coming onto the market,” says NAR Chief Economist Lawrence Yun. The market for homes priced at $1 million or more saw listings jump 34% in April compared to a year ago, and buyers responded to the greater housing choices. High-end home sales likely were behind the rise in the median price for an existing home, which climbed to $407,600—the highest price on record for the month of April. That’s nearly 6% higher than a year ago. “Home prices reaching a record high for the month of April is very good news for homeowners,” Yun says. “However, the pace of price increases should taper off since more housing inventory is becoming available.” More homeowners are listing this spring, with inventory of unsold existing homes climbing 9% in April compared to March. National housing inventory is at about a 3.5-month supply at the current monthly sales pace, which is still considered a brisk selling market.

Source: NAR