By Manuel Gutierrez, Consulting Economist to NKBA

The third straight monthly drop has led to the lowest sales pace in nearly two years.

• A sharp increase in mortgage rates for the year are beginning to impact home sales.
• April sales were 5.9 percent below the same period last year.
• Total sales for the first four months of the year are 10 percent behind 2021 levels.
• The lower sales pace has resulted in a higher inventory of homes for sales. The 1.03 million existing homes available in April is the highest level since November of last year, but still far below the nearly two million total five years ago.
• At the current sales pace, inventory is sufficient to last 2.2 months, vs. the long-term average supply of 3.2 months.
• Regionally, sales in April fell in just two of the four regions. The south was off by 4.6 percent and the West by 5.8 percent, but those regions represent nearly two-thirds of total US sales.
• Home prices hit another all-time record, with the average increasing to $398,000 in April, a 9.2 percent jump from a year ago. The median sales price was 14.8 percent higher than last year, also a new high at $391,000.

A third straight monthly drop in home sales has led to the lowest pace in nearly two years.