• Existing home sales fell 0.5% in April to a seasonally adjusted annual rate (SAAR) of 4 million. Sales were 2% lower than in April 2024, according to the National Association of Realtors (NAR).
• Total housing inventory at the end of April increased to 1.45 million units. That’s up 9% from March and 20.8% higher than a year ago.
• The median existing-home sales price in April was $414,000, up 1.8% from a year ago.

What happened: Sales of existing homes surprised on the downside in April, reflecting contracts signed in March before heightened policy uncertainty further dampened housing activity.

Why it matters: While sellers have returned to the market this spring, demand appears to be off to a slow start this home shopping season. In March, the monthly flow of homes coming on the for-sale market was 9% higher than in March 2024 according to Zillow data.

Despite the advantages of lower mortgage rates and higher inventory compared to spring 2024, peak policy uncertainty in April caused a slowdown in the number of homes going under contract. Zillow data suggests that next month’s home sales count is likely to remain below year-ago levels.

The pullback will likely be short-lived with Zillow anticipating 4.12 million home sales in 2025 —  that’s 1.4% higher than in 2024. Zillow data confirms a small rebound in the number of homes going under contract in the first two weeks of May. The early May data suggests that perhaps this year’s peak home shopping activity may have been delayed.