US home sales fell 2.5 percent in April

WASHINGTON — U.S. sales of existing homes tumbled 2.5 percent in April — with the costs of buying a home jumping and would-be buyers facing a persistent shortage of properties on the market.

The National Association of Realtors said Thursday that homes sold last month at a seasonally adjusted annual pace of 5.46 million, down from 5.60 million in February. Home sales have dropped 1.4 percent over the past year, largely because the number of sales listings has declined 6.3 percent.

The relatively healthy job market has bolstered demand to purchase homes. But the inventory shortage, rising prices and higher mortgage costs are weighing on the real estate market.

The dearth of homes for sale and climbing mortgage rates have amplified the competition for buying a home. Homes lasted a median of just 26 days on the market in April, down from 39 days a year ago. Buyers are eager to close sales before higher borrowing costs further erode the affordability of their homes.

Mortgage buyer Freddie Mac said the interest charges on a 30-year, fixed rate mortgage averaged 4.66 percent this week, the highest level since May 2011.

With supply levels so low, the median sales price has risen 5.3 percent from a year ago to $257,900.

Home sales in April fell in the Northeast, South and West. Sales were unchanged in the Midwest.

Must Read

UK manufacturers see costs jump in wake of Brexit vote

Aug 16, 2016

Official figures show consumer prices in Britain rose more than expected in July, while the cost of raw materials for manufacturers are mounting as a result of the pound's drop in the wake of the vote to leave the European Union

She said yes: Claye proposes after taking Olympic silver

Aug 16, 2016

She said yes: Claye proposes after taking Olympic silver

Japan's trade shrinks in July, exports sink 14 percent

Aug 18, 2016

Japan reports it posted a trade surplus of 513.5 billion yen ($5.1 billion) in July, though exports sank 14 percent from a year earlier

Search

Obserworld delivers the most accurate and up-to-date world news for the global audience with a thorough research and in-depth interviews. Discover the world through Obserworld.

Contact us: sales[at]obserworld.com