Previously occupied home sales drop for third month

Sales of previously occupied U.S. homes fell for the third straight month in April as the number of properties for sale hit a record low, driving prices to new highs.

Existing-home sales fell 2.7 percent last month from March to a seasonally adjusted rate of 5.85 million annualized units, the National Association of Realtors said Friday. Sales jumped 33.9 percent from April last year, when the pandemic caused sales to slow sharply.

April’s sales pace was the slowest since last June and well below the 6.01 million sales rate economists expected, according to Factset.

Sales through the first four months of this year are running 20 percent higher than they were a year ago, the NAR said.

The combination of solid demand and a dearth of homes on the market continues to drive up home prices. Last month, the U.S. median home price surged 19.1 percent from a year earlier to $341,600, an all-time high.

The low inventory of homes on the market is fueling heated competition among buyers, resulting in bidding wars and leading to homes selling at a breakneck pace.

Homes were typically snapped up within just 17 days of hitting the market last month, the fastest turnaround time on records going back to 2011, the NAR said.