Despite big gains in supply, unexpectedly, home sales slipped in April.

• In April, the median price of an existing home sold was $407,600, representing a 5.7% year-over-year increase.
• Despite a 9% month-to-month increase and a 16% year-over-year increase, the inventory in April only provided a 3.5-month supply at the current sales pace.
• In April, the percentage of first-time buyers increased to 33%, a slight rebound from the previous year's 29%.

The National Association of Realtors reported that sales of previously owned homes decreased by 1.9% in April compared to March, to 4.14 million units on a seasonally adjusted annualized basis. Despite this, the forecast had predicted a slight increase.

Last year's sales figures were exceeded by 1.9% in April 2023.

The sales are based on closings, so contracts were likely signed in February and March. Mortgage rates rose at the beginning of February and then remained at around 7% for the following two months before increasing further in April.

According to Lawrence Yun, chief economist for the Realtors, the 300 basis point increase in mortgage rates from pre-Covid pace puts us in uncharted territory regarding the impact of the lock-in effect on home sales.

The total housing inventory at the end of April was 1.21 million units, representing a 9% month-to-month increase and a 16% year-over-year increase. Despite this, the current sales pace only provides a 3.5-month supply. A balanced market is considered to have a 6-month supply. However, the segment of the market priced over $1 million saw a 40% year-over-year increase, making it the most active segment.

The number of homes sold in the price range below $100,000 decreased by 7.1% annually, whereas the sales of homes priced above $1 million increased by 40%.

Strong demand and limited supply kept prices high in April. The median price of an existing home sold in April was $407,600, a 5.7% increase from the previous year. This was another record high price for the month. In fact, 27% of homes sold above their list price due to the intense competition.

"Yun stated that the record-high home prices in April are great news for homeowners. Nevertheless, the rate of price increases should slow down as more housing inventory becomes accessible."

In April, first-time buyers accounted for 33% of sales, a slight increase from the previous year's 29%. Despite this, the all-cash share remained high at 28% of all transactions.

In the Northeast, sales decreased by 4% from March to April 2023, while the median price increased by 8.5% compared to the previous year.

In the Midwest, sales decreased by 1% both monthly and annually, while the median price increased by 6% from April 2023 to $303,600.

In the South, sales decreased by 1.6% from March and 3.1% from the previous year. The median price in the South increased by 3.7% compared to the previous year.

In the West, sales decreased by 2.6% in the month but increased by 1.3% from the previous year. The median price in the West was $629,600, which was a 9.3% increase from April 2023.