S
ales of existing homes slowed in April, casting a shadow on the spring selling season. Despite a record number of listings, buyers remain cautious, with sales dropping 0.5% from March and 2% from last year, according to the National Association of REALTORS. The market has been operating at 75% of pre-pandemic levels for three years, despite the addition of 7 million jobs.

    First-time homebuyers are starting to reemerge, accounting for 34% of sales in April, their highest share since July 2020. However, elevated home prices and mortgage rates may be keeping some buyers on the sidelines. The median existing-home price was $414,000 in April, a 1.8% year-over-year increase.

    The market remains tilted in favor of sellers, but with inventory levels at nearly five-year highs, consumers have more negotiating power. Housing inventory has risen 20.8% from last year, offering buyers more options, although the supply of affordable homes for low- and middle-income buyers still lags behind demand.

    Buyers can expect competition to remain fierce in some markets, with 18% of homes selling above list price and 60% selling within a month. On average, properties received 2.4 offers, and all-cash buyers made up 25% of transactions. Regional sales trends varied, with the Northeast experiencing flat sales, the Midwest seeing a slight increase, and the South and West reporting declines.