Sales of previously owned homes tumble in April as the supply shortage bites

Sales of previously owned homes tumble in April as the supply shortage bites

The housing market unexpectedly slowed — again — in April as a lack of adequate inventory and soaring prices hindered buying activity. Sales of existing homes in the US dropped 2.7% last month to an annualized pace of 5.85 million units, the said Friday. The median estimate from economists surveyed by Bloomberg was for a jump to a 6.07 million unit rate. The drop marks a third straight decline, though sales are still up 20% year to date as massive demand locks horns with strained supply. The median price for previously owned homes soared 19.1% year-over-year to a record-high $341,000, with price hikes recorded across every region in the US. Total inventory rose to 1.16 million homes by the end of April, according to the report. Unsold inventory rose to a 2.4-month supply at the current sales pace, up from the March reading of 2.1 months. While the cooling rate of homebuying activity has bolstered unsold supply, the figures still sit near record lows. Demand is expected to stay elevated through the year and continued reopening should help prop up supply, Lawrence Yun, chief economist at NAR, said in a statement. "We'll see more inventory come to the market later