Americans pulled back their pace of home-buying in April, as shrinking inventories and rising prices are putting them in a bind with fewer and fewer options, The Associated Press reports.
The National Association of Realtors says sales of existing homes slipped 2.3% last month to a seasonally adjusted annual rate of 5.57 million. Still, a stable job market has supported solid demand from buyers as home purchases are 1.6% higher than a year ago.
But the specter of ever tightening supplies is starting to squeeze the market. Would-be buyers are mobbing open houses as sales are occurring on the shortest timeline ever recorded by NAR. The inventory of homes for sale has declined on an annual basis for the past 23 months, creating a shortage that has pushed up prices above income growth.
The number of properties listed for sale has plunged 9% over the past 12 months to 1.93 million. Homes are staying on the market for a median of just 29 days. The fast-moving market has fueled rising home values that have priced some entry-level buyers out of the market.
The median sales price has risen 6% from a year ago to $244,800. But the sales volume of homes worth less than $250,000 has declined over the past year, while homes worth more than the median have experienced sales growth.
Sales declined last month in the Northeast, South and West, while rising in the Midwest. As a result of the rising prices, it’s still cheaper to buy rather than rent, but the gap is narrowing.
