Home resales decline 2.3% as supply tightens

May 24 (UPI) -- Existing home sales declined 2.3 percent in April as supply levels continue to diminish, the National Association of Realtors reported Wednesday.

The drop in resales of single-family homes, townhouses, condos and co-ops declined to a seasonally adjusted annual rate of 5.57 million in April from a downwardly revised 5.70 million in March, the NAR said in a release.

Sales are 1.6 percent above a year ago, the NAR reported.

"Stubbornly low supply levels" are driving down sales, according to NAR, as homes on the market decreased to 29 days from 34 days in March and 39 days a year ago.

"Last month's dip in closings was somewhat expected given that there was such a strong sales increase in March at 4.2 percent, and new and existing inventory is not keeping up with the fast pace homes are coming off the market," Lawrence Yun, NAR's chief economist, said in a release. "Demand is easily outstripping supply in most of the country and it's stymieing many prospective buyers from finding a home to purchase."

Total housing inventory at the end of last month climbed 7.2 percent to 1.93 million existing homes available for sale -- 9.0 percent lower than a year ago. The supply has fallen year-over-year for 23 consecutive months.

Unsold inventory is at a 4.2-month supply, down from 4.6 months a year ago.

"Realtors continue to voice the frustration their clients are experiencing because of the insufficient number of homes for sale," added Yun. "Homes in the lower- and mid-market price range are hard to find in most markets, and when one is listed for sale, interest is immediate and multiple offers are nudging the eventual sales prices higher."

Homes that spent the shortest amount of time on the market in April were in San Jose-Sunnyvale-Santa Clara, Calif., 23 days; San Francisco-Oakland-Hayward, Calif., 25 days; Denver-Aurora-Lakewood, Colo., 27 days; and Seattle-Tacoma-Bellevue, Wash., 28 days.

By region, sales decreased 2.7 percent in the Northeast, 5 percent in the South and 3.33 percent in the West. They increased 3.8 percent in the Midwest. Median prices range from $194,500 in the Midwest to $217,700 in the South, $267,700 in the Northeast and $358,600 in the West.

For all existing housing types, the median price in April was $244,800, up 6 percent from April 2016's $230,900. It was the 62nd straight month of year-over-year increases.

Sales of single-family home sales decreased 2.4 percent to a seasonally adjusted annual rate of 4.95 million in April from 5.07 million in March. The median existing single-family home price was $246,100 in April, up 6.1 percent from April 2016.

First-time buyers were 34 percent of sales in April.

"Mortgage rates have been stuck in a holding pattern in recent months, which is a relief for spring homebuyers," Yun said. "With price growth showing little sign of slowing, prospective first-time buyers will be the most sensitive to any sudden uptick in rates in the months ahead."