Existing Home Sales Tumble In April As Rate-Hikes Crush Affordability

Following the April drop in new home sales amid record high average prices, existing home sales tumbled 2.5% MoM (considerably worse than the 0.9% drop expected) to 5.36m SAAR.

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Purchases fell in three of four regions, including a 2.9 percent decline in the South and a 3.3 percent drop in the West

Notably, while single-family home sales decreased 3 percent last month to an annual rate of 4.84 million, purchases of condominium and co-op units rose 1.6 percent to a 620,000 pace.

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On a YoY basis, it looks like we have hit peak housing…

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“Since NAR began tracking this data in May 2011, the median days a listing was on the market was at an all-time low in April, and the share of homes sold in less than a month was at an all-time high.

The median existing-home price for all housing types in April was $257,900, up 5.3 percent from April 2017 ($245,000). March’s price increase marks the 74th straight month of year-over-year gains, but price growth is slowing…

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And just like new home sales, all the positives are at the higher-end…

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“We are seeing no breakout in home sales,” Lawrence Yun, NAR’s chief economist, said at a press briefing accompanying the report. “We are stuck in this narrow range at a time when the economy is doing well.”

“However, inventory shortages are even worse than in recent years, and home prices keep climbing above what many home shoppers can afford,” Yun said in a statement.

With mortgage rates at 8-year highs, it should not be surprise…

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Source: ZeroHedge

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