The U.S. housing market displayed a mixed but firming picture in April, as sales stabilized and price indexes pointed to accelerating appreciation. Existing-home sales rose 0.2% month over month to a seasonally adjusted annual rate of 4.00 million, according to the National Association of Realtors (NAR). Year over year, sales were down 1.1%.
NAR Chief Economist Lawrence Yun noted that home sales have remained at roughly 75% of pre-pandemic activity for three years, despite the addition of seven million jobs to the economy. “Pent-up housing demand continues to grow, though not realized,” Yun said. “Any meaningful decline in mortgage rates will help release this demand.”
Inventory at the end of April totaled 1.45 million units, up 9% from March and 20.8% from a year earlier. That represents a 4.4-month supply at the current sales pace, compared with 3.5 months in April 2023. The increase in supply may offer some relief to buyers, though it remains below the 6-month level typically considered balanced.
The median existing-home sales price climbed 1.8% year over year to $414,000, the highest ever recorded for the month of April. This marks the 22nd consecutive month of year-over-year price increases, underscoring persistent upward pressure on home values despite elevated mortgage rates.
Separately, the ICE Home Price Index showed U.S. home prices rose 0.32% on a seasonally adjusted basis in April, the strongest monthly increase in nearly two years. On an annual basis, home-price growth accelerated to 0.9%. ICE’s head of mortgage and housing market research, Andy Walden, said the monthly gain, if sustained, would equate to an annualized appreciation rate of nearly 4%. “The key question now is whether that momentum can withstand the recent upward pressure on interest rates heading into the heart of the spring buying season,” Walden added.
ICE reported that 90% of markets posted seasonally adjusted price gains in April, the highest share in nearly two years. Among the 100 largest U.S. markets, 70 recorded year-over-year increases, with the Northeast accounting for seven of the eight fastest-appreciating markets. All 30 markets with annual declines were located in the South and West.
For financial advisors, the data may inform client conversations around estate planning and portfolio allocation. Rising home equity can affect net worth calculations and retirement funding strategies. Meanwhile, the persistent supply shortage and price momentum may influence decisions on annuity or other fixed-income products tied to real estate exposure.
Advisors working with clients nearing retirement should consider the implications of home equity as a component of wealth, especially given the potential for continuous retirement planning in a rising-rate environment. The data also underscores the importance of monitoring local market conditions, as regional disparities in price trends persist.
